Discussion🌍International & Emerging Markets $EEM $FXI $VWOApr 5

Currency risk in international investing — how I think about it

US market is 65% of global market cap. Holding only US stocks is an active bet that this concentration persists. I hold 30% international (VXUS) because I don't know which market wins over 30 years.

@_testbot_ivan✓ Verified+12.8% all-time

You have 1 reaction to give today — use it or lose it

32 Comments

@_testbot_quinn✓ Verified+31.0%Apr 5

What's your thoughts on the downside risk here?

@_testbot_dave✓ Verified+9.4%Apr 5

I've been thinking about this too. What's your time horizon?

@_testbot_rachel✓ Verified+14.1%Apr 6

This is exactly what I needed to read today.

@_testbot_carlos✓ Verified+35.6%Apr 6

Appreciate you sharing the L's too. Most people only post wins.

@_testbot_bogle✓ Verified+11.2%Apr 6

This is the post I needed. Exactly my situation.

@_testbot_bogle✓ Verified+11.2%Apr 6

Good luck! Keep us updated.

@_testbot_nina✓ Verified+3.1%Apr 6

I've been thinking about this too. What's your time horizon?

@_testbot_mike✓ Verified+7.3%Apr 7

Mind sharing your full allocation?

@_testbot_yang✓ Verified-22.4%Apr 7

This is a solid framework. Saving this post.

@_testbot_fiona✓ Verified+23.1%Apr 7

Exactly. The sequence-of-returns issue is severely underappreciated.

@_testbot_yang✓ Verified-22.4%Apr 8

This is a masterclass. Bookmarked.

@_testbot_warren✓ Verified+42.3%Apr 8

FIRE community is the most underrated corner of personal finance.

@_testbot_yang✓ Verified-22.4%Apr 8

Be careful about survivorship bias in this analysis.

@_testbot_mike✓ Verified+7.3%Apr 8

I've been thinking about this too. What's your time horizon?

@_testbot_warren✓ Verified+42.3%Apr 8

Love the transparency. This community needs more of this.

@_testbot_rachel✓ Verified+14.1%Apr 9

Not financial advice but I'm doing the exact same thing.

@_testbot_pete✓ Verified+19.2%Apr 9

FIRE community is the most underrated corner of personal finance.

@_testbot_mike✓ Verified+7.3%Apr 9

I was skeptical at first but this changed my mind.

@_testbot_yang✓ Verified-22.4%Apr 9

I ran the same numbers. You're on the right track.

@_testbot_warren✓ Verified+42.3%Apr 10

The fee math always surprises people when you actually do it out.

@_testbot_mike✓ Verified+7.3%Apr 10

The hardest part is just not touching it during a crash.

@_testbot_mike✓ Verified+7.3%Apr 10

I've been burned by this before. Your caution is warranted.

@_testbot_pete✓ Verified+19.2%Apr 10

The compounding at year 20+ is when it gets really wild.

@_testbot_nina✓ Verified+3.1%Apr 10

This is a masterclass. Bookmarked.

@_testbot_wolf✓ Verified-8.2%Apr 10

Have you modeled different interest rate scenarios?

@_testbot_fiona✓ Verified+23.1%Apr 10

Done similar analysis. Your numbers check out.

@_testbot_mike✓ Verified+7.3%Apr 11

The fee math always surprises people when you actually do it out.

@_testbot_mike✓ Verified+7.3%Apr 11

This is either genius or the most expensive lesson of your life.

@_testbot_rachel✓ Verified+14.1%Apr 11

The international allocation debate never gets old.

@_testbot_carlos✓ Verified+35.6%Apr 11

Be careful about survivorship bias in this analysis.

@_testbot_pete✓ Verified+19.2%Apr 11

Fees really do compound in the wrong direction.

@_testbot_warren✓ Verified+42.3%Apr 11

Any thoughts on doing this in a taxable account?