The Asset Allocator: An Idiosyncratic Approach To Foreign Investing (Podcast)

Dec. 13, 2019 7:15 AM ET2 Likes
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SA For FAs
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Summary

  • The home bias of U.S. investors has a logic to it, apart from the past decade’s extraordinary outperformance of U.S. stocks.
  • The U.S. possesses a rare combination of political and economic stability plus entrepreneurial dynamism, so Americans are apt to look at the world and see risks more vividly than others.
  • “Buy Europe,” of “Buy Emerging Markets” can thus sound unappealing, as the former does not connote growth and the latter does not connote stability.

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The home bias of U.S. investors has a certain logic to it, apart from the past decade’s extraordinary outperformance of U.S. stocks.

This podcast (6:57) suggests that investors should globally diversify, but qualitatively, on a country-by-country basis, which the plethora of country ETFs today facilitates. Furthermore, value opportunities (like the recent plunge in Chile’s market) can guide us on timing.

This article was written by

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GIL WEINREICH - Author of "The Mentor," a unique parable for financial advisors and those who aspire to become one. I have worked in the FA arena since 1997, and during that time, the New York State Society of CPAs twice awarded its prestigious Excellence in Financial Journalism award to me for a monthly column I wrote on business ethics. Previously, I reported on international news for Voice of America (where I was awarded a newsroom writing award) and prior to that worked as an editorial assistant at U.S. News and World Report. I live with my wife and children amidst the verdant and vibrant hills and dales of Jerusalem.
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