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Advice like just buy Vanguard or US treasuries is not really all that great of advice. One of the biggest mistakes people make in investing is country concentr
by chollida1 10y ago
Advice like just buy Vanguard or US treasuries is not really all that great of advice.
One of the biggest mistakes people make in investing is country concentration. Telling people to "dump 100%" into Vanguards S&P 500 is just, well I'll use misguided but I should use stronger language.
Telling someone to invest just in the US equity market if you live and work in the US there is just an broader way of telling someone to invest everything in the company they work for.
You still have risk like 2008 where you can have the double whammy of both your company and your investments both getting beat up at the same time.
Everyone should have exposure outside of their own country, especially American's. Or Put another way, if your whole investment portfolio is based in one country that's better than investing in a single company but not too much better in that you're still making the same investment mistake of significant portfolio concentration
- nunez 10y agoisn't that the point of having a three headed fund? 50% spy, 25% bonds, 25% international?
- chollida1 10y agoNot sure what a "three headed fund" is, but the sample you gave would diversify out of the US, assuming the 25% bond fund doesn't just hold US debt. You really shouldn't care about the number of funds you hold, assuming you don't take it to extreme levels, just that you don't hold only exposure to one country.