Are there many stories of Americans leaving the USA to go start businesses because there is better opportunity elsewhere?
There is a lot of doom and gloom out there. I was told "it only makes sense other countries have more room to grow" 20 years ago, and I'm still hearing that while USA has outperformed. People shouting The Sky is Falling will eventually be right, but I will continue to believe the USA is the best place to have your money and invest.
I saw a while back that international might be a good place to park retirement money, I moved a good chunk of my account there. After talking with an investment advisor, he told me that was likely a good move as well.
Has international outperformed USA? Don't know your timeline, but I highly doubt it.
Might feel 'safe' as you are very close to retirement (on in retirement) but USA has outperformed for a long time while people have made the same doomer claims.
I'm not near retirement at all, still 30 years left. I could be incorrect, but just double checking now that in 2025 while US stocks gained an average of 18%, non-US stocks gained almost double at 30%. I don't remember the exact timeframe that I moved my funds, but I moved 25% of my account to international funds and gained a good chunk with that. All this being said, I don't think this is permanent but maybe short lived. Only time will tell.
Ahh okay that makes sense. This year, International has done extremely well comparatively. When you said "a while back" in your original post I had assumed 5-10 years or more but time is all relative so I shouldn't have assumed!
Can’t agree more? Keep waiting for the US markets to wise up. Everything suggests a 15 to 20% correction, regardless of the current geopolitical conditions that warrant an even bigger correction in US equities.
Old Harry Markowitz (Nobel Prize for Modern Portfolio Theory) laid out some simple guidelines for optimal investing: Pick the assets with the best risk-adjusted returns (Sharpe Ratio) and create a diversified portfolio of assets with low correlation.
So diversifying with international stocks seems to make sense - except that they generally have weaker Sharpe ratios than US stocks and indexes. You get diversification but at the cost of either lower returns and/or higher per dollar risk.
Hedging with Gold is a popular trope, but Gold is not technically an asset because it doesn't create any value. So even if it holds value against inflation, you still incur an opportunity cost of forgone real (inflation adjusted) returns. Buffet advises against gold for this reason.
Ironically, you didn't mention one of the best Sharpe ratio assets: US Commercial Real Estate.
But -
- Direct ownership isn't just an investment, it's a life style choice.
- REITs may invest in Real Estate, but they *act* more like low return stocks than a real estate portfolio. REITs have up to 70% correlation to public equities which means they are a poor hedge asset.
- Private Syndicates are exclusive, expensive, and illiquid which makes it hard to build a diversified portfolio with direct investments in syndicates.
It's time for something new.
Something that is easier than direct ownership, but has higher returns and Sharpe ratios than REITs.
I started buying International stock funds 37 years ago in Mutual funds. I bought Harbor International, and Vanguard's Emerging Market fund, and Developed market fund, and Total International fund. Switched the Vanguard ones to ETFs ( lower expenses) without any taxes as they are identical. Now that I am retired , I am buying more individual stocks, but continuing to buy ETFs also . My foreign percentage is about 35% and US about 65%. But total percentage in stocks vs Bonds only about 40% stocks 60% bonds. I would be heavier in stocks but the prices are just too high. I am more company specific now than before. I will buy the best companies anywhere. I also bought recently just a few shares of FLIN, Franklin India fund (a large and mid cap stock fund for Indian companies). Also I bought (Small INDIA) SMIN, I shares India fund that buys small companies in India. A non Indian born person cannot buy Indian stocks directly unless ADR. ETF is the way to go. Or another is a good hedge fund, Like the author of "The Joys Of Compounding" Gautam Baide runs.
Very diversified - thanks for the transparency. Always great in retirement to play it as safe as possible.
My only comment would be you would have had more money if you had a higher percentage in USA over the last many, many years. People have been claiming the emerging markets 'have so much more room to grow' yet have not outperformed....
Oh for sure. I have been way too conservative up till now. I plan to be much more aggressive going forward in retirement. Will be 100% in stocks probably into the next major drawdown. Took me a long time to understand the game.
I am with you on this.
Balance, but don't leave US completely, as it will continue to grow
Are there many stories of Americans leaving the USA to go start businesses because there is better opportunity elsewhere?
There is a lot of doom and gloom out there. I was told "it only makes sense other countries have more room to grow" 20 years ago, and I'm still hearing that while USA has outperformed. People shouting The Sky is Falling will eventually be right, but I will continue to believe the USA is the best place to have your money and invest.
I saw a while back that international might be a good place to park retirement money, I moved a good chunk of my account there. After talking with an investment advisor, he told me that was likely a good move as well.
Has international outperformed USA? Don't know your timeline, but I highly doubt it.
Might feel 'safe' as you are very close to retirement (on in retirement) but USA has outperformed for a long time while people have made the same doomer claims.
I'm not near retirement at all, still 30 years left. I could be incorrect, but just double checking now that in 2025 while US stocks gained an average of 18%, non-US stocks gained almost double at 30%. I don't remember the exact timeframe that I moved my funds, but I moved 25% of my account to international funds and gained a good chunk with that. All this being said, I don't think this is permanent but maybe short lived. Only time will tell.
Ahh okay that makes sense. This year, International has done extremely well comparatively. When you said "a while back" in your original post I had assumed 5-10 years or more but time is all relative so I shouldn't have assumed!
Best of luck out there.
Can’t agree more? Keep waiting for the US markets to wise up. Everything suggests a 15 to 20% correction, regardless of the current geopolitical conditions that warrant an even bigger correction in US equities.
Old Harry Markowitz (Nobel Prize for Modern Portfolio Theory) laid out some simple guidelines for optimal investing: Pick the assets with the best risk-adjusted returns (Sharpe Ratio) and create a diversified portfolio of assets with low correlation.
So diversifying with international stocks seems to make sense - except that they generally have weaker Sharpe ratios than US stocks and indexes. You get diversification but at the cost of either lower returns and/or higher per dollar risk.
Hedging with Gold is a popular trope, but Gold is not technically an asset because it doesn't create any value. So even if it holds value against inflation, you still incur an opportunity cost of forgone real (inflation adjusted) returns. Buffet advises against gold for this reason.
Ironically, you didn't mention one of the best Sharpe ratio assets: US Commercial Real Estate.
But -
- Direct ownership isn't just an investment, it's a life style choice.
- REITs may invest in Real Estate, but they *act* more like low return stocks than a real estate portfolio. REITs have up to 70% correlation to public equities which means they are a poor hedge asset.
- Private Syndicates are exclusive, expensive, and illiquid which makes it hard to build a diversified portfolio with direct investments in syndicates.
It's time for something new.
Something that is easier than direct ownership, but has higher returns and Sharpe ratios than REITs.
> That's why we're introducing Tokenized Real Estate Investment Funds (TREIFs)
See here: www.AmericanDigitalRealty.com
I started buying International stock funds 37 years ago in Mutual funds. I bought Harbor International, and Vanguard's Emerging Market fund, and Developed market fund, and Total International fund. Switched the Vanguard ones to ETFs ( lower expenses) without any taxes as they are identical. Now that I am retired , I am buying more individual stocks, but continuing to buy ETFs also . My foreign percentage is about 35% and US about 65%. But total percentage in stocks vs Bonds only about 40% stocks 60% bonds. I would be heavier in stocks but the prices are just too high. I am more company specific now than before. I will buy the best companies anywhere. I also bought recently just a few shares of FLIN, Franklin India fund (a large and mid cap stock fund for Indian companies). Also I bought (Small INDIA) SMIN, I shares India fund that buys small companies in India. A non Indian born person cannot buy Indian stocks directly unless ADR. ETF is the way to go. Or another is a good hedge fund, Like the author of "The Joys Of Compounding" Gautam Baide runs.
Very diversified - thanks for the transparency. Always great in retirement to play it as safe as possible.
My only comment would be you would have had more money if you had a higher percentage in USA over the last many, many years. People have been claiming the emerging markets 'have so much more room to grow' yet have not outperformed....
Oh for sure. I have been way too conservative up till now. I plan to be much more aggressive going forward in retirement. Will be 100% in stocks probably into the next major drawdown. Took me a long time to understand the game.
If you have enough to retire, don't get too risky/aggressive! haha. You have made it!
I'm more commenting on those who want max growth over the next 10-50 years and are working towards having enough to retire.
Best of luck out there.