Echoing what Homer said, "people" should actually say "some people".I tend to buy into the global cap weight, based in theory that’s what I do, but I do so humbly and wouldn’t be surprised if the US continues to outperform. If Bogle and Buffet say you don’t really need to, who am I to argue.I haven’t looked at this thread in a long time, because really, it is at its foundation It is a Religious argument. throughout valid arguments to go all USA and valid arguments to go balanced international. Perhaps even valid arguments to go exclusively international. They are all valid arguments. Some of us find one more appealing as compared to the others. And we invest appropriately. But there is no objective truth that says investing one way or the other way is correct. for me, I find the arguments for an all USA portfolio to be more impressive as compared to world balanced. Someone else like Craig finds world balanced to be more convincing. Neither one of us is right. If Jack Bogle said there is no need to invest international that is good enough for me. I appreciate his argument, I appreciate Craig, I appreciate hand solo, I appreciate all the arguments. And to me , the USA argument just resonates the most. There will never be a right or wrong answer. I do find the vent the USA people seem to be more intellectually modest and acknowledge that there are other valid opinions where the international people seem not to acknowledge that other opinions are valid.
It is interesting though, while people certainly do have other tilts here, like SCV or something else, the general consensus in the US is that market cap is the way to go. But when it’s global, it’s “whatever you do, it’s ok, nobody really knows”. Now you could argue that international is less efficient in the US due to taxes and currency exposure, but that’s not really why people avoid international. It really has to do with past performance and expected performance.
So I can’t really logically reconcile that market cap is best for US but not for the globe.
Your comment can reasonably be used as an example of what KBR was getting at: that people who aren't doing global market cap routinely get all kinds of things projected onto them (such as being performance-chasers, etc.). It may be true of some of them, but to assume that's true of all of them is wild speculation (and false, for that matter).
I can't really logically reconcile those kinds of projections with the allocation reasons given upthread by, say, RosieQ, or myself for that matter.
If you're interested in why people do what they do, it's better to ask them than to tell them.
Statistics: Posted by HanSolo — Fri Apr 12, 2024 1:05 am — Replies 5486 — Views 1004836
