This is a slice out of my foreign stocks monitor and accounts for a lot of the foreign names I own for clients. The names are not important but the effect is. The market feels worse off than the three SPX points it is down right now. The dollar is also lower today which accounts for the move up in these stocks.This illustrates what I have been writing for ages, my clients have a lot less riding on my being exactly right by virtue of deciding early on in the process that I want a lot of foreign exposure.
This is not that scientific, but is quite accessible for do-it-yourselfers.
3 comments:
A few years back, Fisher recommended a real simple strategy: Buy EFA and SPY in roughly these proportions:
55% SPY 45% EFA. I may be off slightly on these percentages, but my point is that I try to shoot for roughly these percentages in the portfolio I do have. The reasoning behind this type of investment strategy is not only diversification but currency effect neutralization (not always a bad thing). BTW, if you took Fisher's recommendation at the time he made it, you have done well. Thoughts?
"...I want a lot of foreign exposure."
Roger: so, what's your opinion on EWZ?
i just wrote about EWZ.
http://randomroger.blogspot.com/2005/09/various-reader-comments.html
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