So I've been 100% SPY for most of my investment career and it's worked out fantastically. I'm a pretty big believer in the US market and im happy being very aggressive because I'm young and in the accumulation phase. But lately I've been toying with the idea of going 50-50 US/ex-US.
I understand the US market makes up roughly 60% of the global market, and I would be underweighting it in my portfolio. Effectively betting on the lower PE ratio of international stocks. But there are a few reasons I think this might actually be a good idea.
I work for the US government and I will likely buy a home and several investment properties in the US. So my income and a significant portion of my net worth are going to be directly tied to the US. I've also bucketted a substantial investment into HFEA (3x leveraged SPY/TLT) so my exposure to US large caps is especially high. I plan to hold this for the next 20 years.
As you can see I have an extreme concentration risk in the US so it might make sense to tilt my core portfolio towards international. Thoughts?
Submitted June 10, 2022 at 04:15AM by Delta3Angle https://ift.tt/V1lqUCi
