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International - most experts say 40%-50%
Adrian Nenu
09-09-2007, 5:48 AM | Post #206009
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Hi all,
According to Vanguard, 401k plans hold an average of 11% in non-US investments. The global market stands at 44/56 US/International. The NY Times interviewed several experts regarding the international allocation. Here are their opinions on the International allocation:
"When Risk Is Home-Grown, Is It Time to Look Abroad?"
http://www.nytimes.com/2007/09/02/business/yourmoney/02fore.html?ref=business&pagewanted=print
- Uri Landesman, head of global growth and international at ING Americas - 40% - 50%
- Ellen Rinaldi, principal for investment counseling and research at Vanguard - 20%
- Arthur P. Steinmetz, at OppenheimerFunds - 40%-50%
- Mr. van Agtmael, the author of "The Emerging Markets Century," is credited with coining the term "emerging markets" in the early 1980s. He recommends at least 20% in Emerging Markets because they represent 23% of the global stock market and have higher growth rates than the US market.
- PATRICK DORSEY, the director of equity research at Morningstar in Chicago, which rates mutual funds, says there is no one international investment percentage that all investors should embrace. "It depends on age, risk tolerance and a whole list of factors," Mr. Dorsey says.
But he agrees with money managers that Americans are "overinvested" in their home market. "It's a familiarity bias," he says. "But it may very well be that our home market is the riskiest. It's a mistake for investors to always think that foreign investments are always riskier."
Adrian
anenu@tampabay.rr.com
Originally posted in thread: 60328
Topics
401(k)
emerging markets
international diversification
money managers
principal
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