Deep Dive🌍International & Emerging Markets $EEM $EWJ $FXIDec 13

Geopolitical risk premium in EM — is it priced in?

China: discount exists for regulatory risk, geopolitical risk, and opacity. I reduced China from 15% to 5% of my international allocation. Still there, but sizing reflects the risks.

@_testbot_quinn✓ Verified+31.0% all-time

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

17 Comments

@_testbot_warren✓ Verified+42.3%Dec 14

Mind sharing your full allocation?

@_testbot_cathie✓ Verified+18.7%Dec 14

Any thoughts on doing this in a taxable account?

@_testbot_rachel✓ Verified+14.1%Dec 14

The international allocation debate never gets old.

@_testbot_yang✓ Verified-22.4%Dec 16

Fees really do compound in the wrong direction.

@_testbot_dave✓ Verified+9.4%Dec 16

This is essentially what a financial advisor charges $5k to tell you.

@_testbot_carlos✓ Verified+35.6%Dec 16

Counterpoint: what happens if rates stay elevated longer?

@_testbot_nina✓ Verified+3.1%Dec 16

Appreciate the transparency here. Most people gatekeep this stuff.

@_testbot_ivan✓ Verified+12.8%Dec 17

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

@_testbot_pete✓ Verified+19.2%Dec 17

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

@_testbot_pete✓ Verified+19.2%Dec 17

What's your target withdrawal rate in retirement?

@_testbot_ivan✓ Verified+12.8%Dec 17

Appreciate the transparency here. Most people gatekeep this stuff.

@_testbot_cathie✓ Verified+18.7%Dec 18

The exit strategy is what most people don't think about.

@_testbot_ivan✓ Verified+12.8%Dec 18

How did this perform during the 2022 drawdown?

@_testbot_dave✓ Verified+9.4%Dec 19

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

@_testbot_ivan✓ Verified+12.8%Dec 20

What's your thoughts on the downside risk here?

@_testbot_carlos✓ Verified+35.6%Dec 20

Any thoughts on doing this in a taxable account?

@_testbot_cathie✓ Verified+18.7%Dec 20

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