I know that no one can predict the future. But this question is worth asking. I have the bulk of my portfolio in VOO and the biggest tech stocks. I also do have a good amount in VXUS.
I see so many opinions online from people urging people to change their investment strategies, and not rely so heavily on the U.S. companies anymore.
I am not saying that the U.S. empire will collapse. I am saying that there is a possibility that the U.S. market will not grow as rapidly in the future as it did in the past.
Really considering rotating a lot of my assets into foreign equities, and mainly gold.
Should we expect the same growth from US equities?
byu/wealthylion1999 instocks
Posted by wealthylion1999
7 Comments
The entire idea behind proper diversification is that there are things we simply cannot know.
I feel like every generation has said this
Markets rotate. Its difficult to know exactly when rebalancing will optimize returns.
The main issue is not growth, but dollar devaluations imo. We are going to print money like never before because the interest payments is unsustainable.
A major reason why VXUS did better was due to forex
In January I would have said VXUS will outperform VOO due to valuations
Given the Iran war however, much of ex-US is facing oil shortages. They’re more exposed economically to the consequences of the war.
So VOO probably will outperform given what we know now. Things can change on a dime though. Probably diversify globally by cap weighting (VT) is best bet
Maybe
Yes, the dollar will never crash because people all around the world are addicted to iphones and that money is converted back to dollars which shows on apples balance sheet, unless apple moves to europe which would be a huge national security risk.