Is my portfolio too risky?

Rufus_Dufus

CreditCardChris said:

China isn't a democracy though and a lot of the world doesn't trust the Chinese government not to collect data.

Do you trust the US government not to collect data?

CreditCardChris

grumiofoundation said:

CreditCardChris said:

grumiofoundation said:

CreditCardChris said:

Currently I'm investing in the Vanguard Global All Cap Index which is weighted 59.8% America, 17% Europe, 12.5% Pacific, 10.1% Emerging and 0.6% other.

But now I'm thinking this is too risky and I should play it safer and go with the Vanguard S&P500 index fund instead? I feel very uneasy investing in countries which have lagged behind the US for the last 100 years.

The world just isn't capable of keeping up with the US and the US is on the verge of breaking through into the space industries (moon / asteroid mining, space exploration etc). Why should I be risking my money in all these other countries when they're not actually doing anything but stagnating / being bought up by the US?

Why do you think that investing in one country is less risky than investing ~50% in that country and ~50% elsewhere? 

If you personally believe that the US (or more accurately the 500 biggest companies in the US) will outperform, on average, all other countries over the next say 20 years then go for it, but you shouldn't be viewing this as de-risking - in fact the opposite, putting all your eggs in one basket.

Perhaps risk isn't the right word, maybe opportunity cost is better? I want the most bang for my buck and splitting my money 60% US and 40% rest of world doesn't seem like a good way to do it. The rest of world is basically like 1 giant bond index, you can make gains for sure but your gains are going to be peanuts compare to the great united states powerhouse economy. 

The last 100 years are proof the US is an unstoppable economic powerhouse churning out unicorn companies every 3.6 days on average. I honestly do believe the 500 largest US companies will outperform the rest of the world combined, again the last 100 years proves this to be true so why wouldn't it be true for the next 20 - 30 years also?

The feedback you keep being given on this forum is to not only invest in the US (in fact thats the feedback you'd get anywhere). 
 
However you clearly think you know best.

So why are you continuing to ask for 'advice'?

Because I'm interesting in people's arguments as to why my suggestion is wrong. I'm not really looking for "advice" per se as I'd never take advice from an internet forum anyway, I'm more after alternative opinions. 

I have not swapped funds yet and I probably won't but something inside tells me in 30 years when I retire I'm going to be !!!!!! I didn't go all in on the US and instead diversified into lesser economies.

Thrugelmir

A 13.3% unemployment rate suggests the US economy isn't currently booming. 

CreditCardChris

Thrugelmir said:

A 13.3% unemployment rate suggests the US economy isn't currently booming. 

Everywhere has terrible temporary unemployment numbers. What's your point?

Sailtheworld

CreditCardChris said:

grumiofoundation said:

CreditCardChris said:

grumiofoundation said:

CreditCardChris said:

Currently I'm investing in the Vanguard Global All Cap Index which is weighted 59.8% America, 17% Europe, 12.5% Pacific, 10.1% Emerging and 0.6% other.

But now I'm thinking this is too risky and I should play it safer and go with the Vanguard S&P500 index fund instead? I feel very uneasy investing in countries which have lagged behind the US for the last 100 years.

The world just isn't capable of keeping up with the US and the US is on the verge of breaking through into the space industries (moon / asteroid mining, space exploration etc). Why should I be risking my money in all these other countries when they're not actually doing anything but stagnating / being bought up by the US?

Why do you think that investing in one country is less risky than investing ~50% in that country and ~50% elsewhere? 

If you personally believe that the US (or more accurately the 500 biggest companies in the US) will outperform, on average, all other countries over the next say 20 years then go for it, but you shouldn't be viewing this as de-risking - in fact the opposite, putting all your eggs in one basket.

Perhaps risk isn't the right word, maybe opportunity cost is better? I want the most bang for my buck and splitting my money 60% US and 40% rest of world doesn't seem like a good way to do it. The rest of world is basically like 1 giant bond index, you can make gains for sure but your gains are going to be peanuts compare to the great united states powerhouse economy. 

The last 100 years are proof the US is an unstoppable economic powerhouse churning out unicorn companies every 3.6 days on average. I honestly do believe the 500 largest US companies will outperform the rest of the world combined, again the last 100 years proves this to be true so why wouldn't it be true for the next 20 - 30 years also?

The feedback you keep being given on this forum is to not only invest in the US (in fact thats the feedback you'd get anywhere). 
 
However you clearly think you know best.

So why are you continuing to ask for 'advice'?

Because I'm interesting in people's arguments as to why my suggestion is wrong. I'm not really looking for "advice" per se as I'd never take advice from an internet forum anyway, I'm more after alternative opinions. 

I have not swapped funds yet and I probably won't but something inside tells me in 30 years when I retire I'm going to be !!!!!! I didn't go all in on the US and instead diversified into lesser economies.

Your suggestion isn't 'wrong' other than you got the risk the wrong way around. If you're happy with the risk and trust what that something inside is telling you just go for it.

You could always look for a tracker that excludes the regions you think are going to underperform so you aren't fully exposed to the USA. Say a world tracker ex Europe or UK etc.

bowlhead99

CreditCardChris said:

grumiofoundation said:
The feedback you keep being given on this forum is to not only invest in the US (in fact thats the feedback you'd get anywhere). 

 
However you clearly think you know best.

So why are you continuing to ask for 'advice'?

Because I'm interesting in people's arguments as to why my suggestion is wrong. I'm not really looking for "advice" per se as I'd never take advice from an internet forum anyway, I'm more after alternative opinions. 

I have not swapped funds yet and I probably won't but something inside tells me in 30 years when I retire I'm going to be !!!!!! I didn't go all in on the US and instead diversified into lesser economies.

You've started over sixty threads in the last year and a half that you've been on the forum. There are several of those threads in which you propose investing only in the US and that there's no point investing anywhere that isn't the US because the US produces more unicorns etc etc etc, everywhere else is dead as an investment choice. People have given you some opinion and guidance on why that is a shortsighted view.

You say you don't want 'advice', but you have started tens of threads asking basic questions about how things work and asking for peoples opinion on investment related stuff, only to tell us (once people have invested some of their free time into giving you some answers) that you know it all.  And you still want alternative opinions. 

It's probably not surprising that the regulars on the board are still telling you that focusing on one area at the expense of all the others is bad quality investing, having told you that before. If you keep asking the same sort of questions, you will keep getting the same sort of answers. You say that you're after 'alternative opinions', but when given those opinions you dismiss them, because they are alternate or contrary to what you believe yourself to be the right answer, even though you're quite lacking in knowledge and experience.

There is probably only a limited amount of new threads of you saying the same thing that people will tolerate before giving up on the idea of replying to repeat their opinion, so if you are looking to create a thread that only has you in it - and nobody else there to disagree with you - you're going about it the right way.

https://forums.moneysavingexpert.com/discussion/6127529/why-do-people-discourage-investing-only-in-the-us-markets#latest
https://forums.moneysavingexpert.com/discussion/6108853/i-finally-opened-a-stocks-and-shares-isa#latest
etc etc etc

Thrugelmir

CreditCardChris said:

Thrugelmir said:

A 13.3% unemployment rate suggests the US economy isn't currently booming. 

Everywhere has terrible temporary unemployment numbers. What's your point?

None as seems as if you already have all the answers. 

yellow1231231

CreditCardChris said:

Yes the US was an emerging economy but it's 2020 and I don't see any other countries leading the way in electric cars, space flight and god knows what other industries will be created in the next 30 years. 

do what ever you like but theres a slight problem in your logic as you want to invest in the s and p 500 which tesla is not in and is already priced as if its dominant and profitable which its not 

CreditCardChris

bowlhead99 said:

CreditCardChris said:

grumiofoundation said:
The feedback you keep being given on this forum is to not only invest in the US (in fact thats the feedback you'd get anywhere). 

 
However you clearly think you know best.

So why are you continuing to ask for 'advice'?

Because I'm interesting in people's arguments as to why my suggestion is wrong. I'm not really looking for "advice" per se as I'd never take advice from an internet forum anyway, I'm more after alternative opinions. 

I have not swapped funds yet and I probably won't but something inside tells me in 30 years when I retire I'm going to be !!!!!! I didn't go all in on the US and instead diversified into lesser economies.

You've started over sixty threads in the last year and a half that you've been on the forum. There are several of those threads in which you propose investing only in the US and that there's no point investing anywhere that isn't the US because the US produces more unicorns etc etc etc, everywhere else is dead as an investment choice. People have given you some opinion and guidance on why that is a shortsighted view.

You say you don't want 'advice', but you have started tens of threads asking basic questions about how things work and asking for peoples opinion on investment related stuff, only to tell us (once people have invested some of their free time into giving you some answers) that you know it all.  And you still want alternative opinions. 

It's probably not surprising that the regulars on the board are still telling you that focusing on one area at the expense of all the others is bad quality investing, having told you that before. If you keep asking the same sort of questions, you will keep getting the same sort of answers. You say that you're after 'alternative opinions', but when given those opinions you dismiss them, because they are alternate or contrary to what you believe yourself to be the right answer, even though you're quite lacking in knowledge and experience.

There is probably only a limited amount of new threads of you saying the same thing that people will tolerate before giving up on the idea of replying to repeat their opinion, so if you are looking to create a thread that only has you in it - and nobody else there to disagree with you - you're going about it the right way.

https://forums.moneysavingexpert.com/discussion/6127529/why-do-people-discourage-investing-only-in-the-us-markets#latest
https://forums.moneysavingexpert.com/discussion/6108853/i-finally-opened-a-stocks-and-shares-isa#latest
etc etc etc

But I have taken the opinions of people onboard and done my own research which is why I went with the global all cap. Now I guess However now I'm having doubts, perhaps to be expected for a first time investor... In any case I still believe it will be something of a miracle to see the rest of the world out perform the US over the next 20 - 30 years but maybe the UK and others will create a few golden eggs of their own along the way to balance it out a little who knows.

  

Thrugelmir

CreditCardChris said:

bowlhead99 said:

CreditCardChris said:

grumiofoundation said:
The feedback you keep being given on this forum is to not only invest in the US (in fact thats the feedback you'd get anywhere). 

 
However you clearly think you know best.

So why are you continuing to ask for 'advice'?

Because I'm interesting in people's arguments as to why my suggestion is wrong. I'm not really looking for "advice" per se as I'd never take advice from an internet forum anyway, I'm more after alternative opinions. 

I have not swapped funds yet and I probably won't but something inside tells me in 30 years when I retire I'm going to be !!!!!! I didn't go all in on the US and instead diversified into lesser economies.

You've started over sixty threads in the last year and a half that you've been on the forum. There are several of those threads in which you propose investing only in the US and that there's no point investing anywhere that isn't the US because the US produces more unicorns etc etc etc, everywhere else is dead as an investment choice. People have given you some opinion and guidance on why that is a shortsighted view.

You say you don't want 'advice', but you have started tens of threads asking basic questions about how things work and asking for peoples opinion on investment related stuff, only to tell us (once people have invested some of their free time into giving you some answers) that you know it all.  And you still want alternative opinions. 

It's probably not surprising that the regulars on the board are still telling you that focusing on one area at the expense of all the others is bad quality investing, having told you that before. If you keep asking the same sort of questions, you will keep getting the same sort of answers. You say that you're after 'alternative opinions', but when given those opinions you dismiss them, because they are alternate or contrary to what you believe yourself to be the right answer, even though you're quite lacking in knowledge and experience.

There is probably only a limited amount of new threads of you saying the same thing that people will tolerate before giving up on the idea of replying to repeat their opinion, so if you are looking to create a thread that only has you in it - and nobody else there to disagree with you - you're going about it the right way.

https://forums.moneysavingexpert.com/discussion/6127529/why-do-people-discourage-investing-only-in-the-us-markets#latest
https://forums.moneysavingexpert.com/discussion/6108853/i-finally-opened-a-stocks-and-shares-isa#latest
etc etc etc

But I have taken the opinions of people onboard and done my own research which is why I went with the global all cap. Now I guess However now I'm having doubts, perhaps to be expected for a first time investor... In any case I still believe it will be something of a miracle to see the rest of the world out perform the US over the next 20 - 30 years but maybe the UK and others will create a few golden eggs of their own along the way to balance it out a little who knows.

  

Nothing in your posts suggests any in depth research of the topic. No one can dispute that a relatively small number of monopolistic companies dominate the global equity indices.