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International. Now is a great time to buy it rebalance.

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  • International. Now is a great time to buy it rebalance.

    International equity valuations were already well below US.

    Then Trump won. While the US markets are responding positively to the prospects of a 15% business tax, reduced regulations, likely bolus of infrastructure spending among other factors....

    Not so much for the international markets. Do you believe this is largely a behavioral drop and a good buying/rebalancing window or have the fundamentals and risks actually changed via trade policy or any other factor.

    I'm sure the efficient market sticklers will say that it is appropriately priced for risk, or do you believe in Behavioral buying opportunities (i.e. 9/11, Brexit, ?now)

  • #2
    Sorry for typo. Title should say buy OR rebalance.

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    • #3
      I just harvested some losses myself..

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      • #4




        International equity valuations were already well below US.

        Then Trump won. While the US markets are responding positively to the prospects of a 15% business tax, reduced regulations, likely bolus of infrastructure spending among other factors….

        Not so much for the international markets. Do you believe this is largely a behavioral drop and a good buying/rebalancing window or have the fundamentals and risks actually changed via trade policy or any other factor.

        I’m sure the efficient market sticklers will say that it is appropriately priced for risk, or do you believe in Behavioral buying opportunities (i.e. 9/11, Brexit, ?now)
        Click to expand...


        I believe in taking advantage of a know opportunity, but not market timing. Choosing to buy a specific category because you are guessing it is undervalued is market timing. Choosing to buy into the overall market after Brexit (or convert to a Roth) because the equity market as a whole is temporarily down is a buying opportunity. In the first instance, you are attempting to guess the valuation of a specific category of equities. In the second instance, you are taking advantage of a short term drop in the continual long-term upward march of equity prices.

        I converted some funds to a Roth after Brexit fully aware that the market might fall even further but realizing it was going to come back at some point. The same may be said for international equities, but you really can't predict what a category will do in relation to other categories. That's why I preach to keep a well-diversified equity fund portfolio, rebalanced annually, always based upon the dictates of a financial plan.
        Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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        • #5
          All true, but I bet the great majority of us who bought after Brexit did so by primarily buying total market international or European funds, not the whole market.

          Now I realize that a 2% blip is nothing in the grand scheme of things, but summated over several buys throughout the year can add up. Assuming there is actually a behavioral "free lunch" component to panic dips.

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