As I run across younger investors who've been in the market for ten years or less, I see a common trend. Most have close to 100% of their investments in stocks. Most of that money is in U.S. funds.
And that's been the place to be since the financial crisis of 2007- early 2009.
Those of us who've been around for a bit remember the "lost decade" for U.S. stocks. From 2000 - 2009, the S & P 500 had a cumulative return of -9.1%. Yup. That's for a decade.
You might be asking, who cares? Fair enough.
Here's why I think you should care. International stocks have stunk up the place for the last several years. Anyone holding anywhere near a market weight of international has underperformed since the financial crisis. Maybe by a lot.
There's a chart in my recent article that shows what international stocks did during the "lost decade" described earlier. If you're in it for the long haul and don't own international stocks, it may be time to consider adding some. We cover the data in the article.
Why Investment Diversification Is Important for Success
I'm sure many will disagree. That's OK. I look forward to the discussion.
Submitted December 12, 2018 at 04:26PM by fredleam1 https://ift.tt/2SDuQy0
