ziggy29
Moderator Emeritus
About 40% of my equities are international, with about 2/3 of that in developed markets and 1/3 in emerging.
I was trying to figure out what investment plan you used that eschewed asset allocation instead of just calling it "overblown". I figured you'd base your logic on performance history and make a positive contribution instead of using words like "diworsification"."Using words like "overblown" and "diworsification" makes it hard to judge the quality of the debate, let alone the appropriate percentage to be allocated, on its own merits."
What kind of low blow is that? Hard to judge in what way? I am not sure what point you are going to make other than being rude.
For me the appropriate percentage in international is zero as I don't invest in what I don't understand. Asset allocation is a myth as the 2008 meltdown confirmed. When the underpinnings of an economy come unglued (fall apart), assets fall in lock step.
Much of asset allocation comes from modern finance theory which only works well in theory, especially since it projects that past as a future prediction.
I don't know how long you've been reading this discussion board, but we have our share of posters who have been able to exploit the gaps in the efficient market hypothesis.I think investors have been conditioned to believe that opportunities like this can't exist.
I don't know how long you've been reading this discussion board, but we have our share of posters who have been able to exploit the gaps in the efficient market hypothesis.
Gosh, I didn't even have to read that book to comprehend that opportunity. If the market was truly efficient then we wouldn't be calling it a "hypothesis".Actually if you read More Money Than God, you find that hedge funds are all about exploiting the gaps. Someone finds a gap makes a killing then everyone else piles in the gap vanishes and it is off to the next gap.
"Using words like "overblown" and "diworsification" makes it hard to judge the quality of the debate, let alone the appropriate percentage to be allocated, on its own merits."
What kind of low blow is that? Hard to judge in what way? I am not sure what point you are going to make other than being rude.
In case I am taking it the wrong way here is the definition of overblown: done to excess and seeming exaggerated. As in the emphasis on asset allocation and international exposure is excessive.
Diworsification is the vernacular for over diversifying.
For me the appropriate percentage in international is zero as I don't invest in what I don't understand. Asset allocation is a myth as the 2008 meltdown confirmed. When the underpinnings of an economy come unglued (fall apart), assets fall in lock step.
Much of asset allocation comes from modern finance theory which only works well in theory, especially since it projects that past as a future prediction.
I think it's also worth noting that at least one of us is too new to be a member of the choir and is interested in hearing what bcinvest is willing to share about his investment approach.My point to BCInvest is that a number of the posters on this board have already heard, learned, and profited from the topics upon which he's lecturing. Preachin' to the choir.
I think it's also worth noting that at least one of us is too new to be a member of the choir and is interested in hearing what bcinvest is willing to share about his investment approach.
I am too new here to have anything to be found by searching. Just testing the water to see if the community is welcoming or holier than thou.
I am too new here to have anything to be found by searching.
Perhaps you would have been better served by spending more time reading and 'getting familiarized' prior to wading in and pointing out our erroneous investment strategies. That comes across as a bit holier than thou, to borrow a phrase.I plan on getting familiarized first and making sure this is worth my time and effort.
I am a value investor and invest in companies I can understand selling a deep discounts to their underlying value. It reduces risk and focuses on primary objective of increasing returns.
I plan on getting familiarized first and making sure this is worth my time and effort. So far I see a lot of thoughtful posts.