Is anyone rebalancing into foreign market funds or stocks?

[MarathonMike]

I took about 25% of my 401K and pushed it into an overseas fund late last year that has been doing well. Is anyone thinking along the same lines, that being foreign stocks and markets will outperform the US markets this year?

 

[BradVesp]

I hear companies are moving money back to the U.S.. So, foreign markets might lose capitol.

 

[DarkFury]

If we go to war you just shot your 401k in the foot. @ william the wie help this fellow out.

 

[william the wie]

Hell no! with a 20-% tariff that has to be made WTO compliant within 56 days or less? Currency risk is not calculable until the treasury and WTO have urinated into the tariff clause sufficiently to suit their tastebuds.

 

[Weatherman2020]

I took about 25% of my 401K and pushed it into an overseas fund late last year that has been doing well. Is anyone thinking along the same lines, that being foreign stocks and markets will outperform the US markets this year?

Right now Schwab has international as continuing to do well.

 

[william the wie]

About two weeks after thumb alternation ceases, risk will be easier to calculate.

 

[MarathonMike]

Hell no! with a 20-% tariff that has to be made WTO compliant within 56 days or less? Currency risk is not calculable until the treasury and WTO have urinated into the tariff clause sufficiently to suit their tastebuds.

You really think the tariff is going to be that much of a negative across the board for foreign stocks?

 

[william the wie]

I took about 25% of my 401K and pushed it into an overseas fund late last year that has been doing well. Is anyone thinking along the same lines, that being foreign stocks and markets will outperform the US markets this year?

Right now Schwab has international as continuing to do well.

As a contratian I find that opinion and justification for it scary. East Asian and EU selling for less than book and a PE that's smaller than earnings growth purchased in dollars is one thing but paying for currency swap fees without a big margin of safety is dangerous to your wealth.

 

[Weatherman2020]

I took about 25% of my 401K and pushed it into an overseas fund late last year that has been doing well. Is anyone thinking along the same lines, that being foreign stocks and markets will outperform the US markets this year?

Right now Schwab has international as continuing to do well.

As a contratian I find that opinion and justification for it scary. East Asian and EU selling for less than book and a PE that's smaller than earnings growth purchased in dollars is one thing but paying for currency swap fees without a big margin of safety is dangerous to your wealth.

I don't pay any fees.

 

[william the wie]

Hell no! with a 20-% tariff that has to be made WTO compliant within 56 days or less? Currency risk is not calculable until the treasury and WTO have urinated into the tariff clause sufficiently to suit their tastebuds.

You really think the tariff is going to be that much of a negative across the board for foreign stocks?

I have no idea. buying a pig in a poke where Congress, WTO and Treasury are all working at cross purposes is an unknown unknown and that is more likely to hurt you than help you.

 

[william the wie]

I took about 25% of my 401K and pushed it into an overseas fund late last year that has been doing well. Is anyone thinking along the same lines, that being foreign stocks and markets will outperform the US markets this year?

Right now Schwab has international as continuing to do well.

As a contratian I find that opinion and justification for it scary. East Asian and EU selling for less than book and a PE that's smaller than earnings growth purchased in dollars is one thing but paying for currency swap fees without a big margin of safety is dangerous to your wealth.

I don't pay any fees.

Not that you get to see.

 

[william the wie]

If we go to war you just shot your 401k in the foot. @ william the wie help this fellow out.

Mike does know what he's talking about but he is asking the wrong question as you pointed out and luck is more important than brains. My highest return ever in percentage terms was sending money to my utilicorp united DRIP in 1998 just before they took over a NZ gas utility with proven reserves. my investment date was after the Asian flu hit NZ and LTCM went under in the US. both of those things blew over before my liquidation order made it to Kansas. My annualized return in percentage terms was in the four figures if memory serves.

The best returns over the past century had been in the Dow Dogs. Basically buying all of the DOW stocks that the analysts consider to be crap. Get a copy of "Beating the Dow" by Michael O'Higgins. You'll laugh so hard you'll cry.

 

[MarathonMike]

If we go to war you just shot your 401k in the foot. @ william the wie help this fellow out.

Mike does know what he's talking about but he is asking the wrong question as you pointed out and luck is more important than brains. My highest return ever in percentage terms was sending money to my utilicorp united DRIP in 1998 just before they took over a NZ gas utility with proven reserves. my investment date was after the Asian flu hit NZ and LTCM went under in the US. both of those things blew over before my liquidation order made it to Kansas. My annualized return in percentage terms was in the four figures if memory serves.

The best returns over the past century had been in the Dow Dogs. Basically buying all of the DOW stocks that the analysts consider to be crap. Get a copy of "Beating the Dow" by Michael O'Higgins. You'll laugh so hard you'll cry.

I follow you, and I realize foreign stocks have their own set of risks. A quarter of my 401K is less than 10% of what I have so that isn't going crazy with an overseas investment. That probably was not clear from my OP. I Fully agree about DRIPS, I've had a half a dozen for over 20 years and have done by far the best in those investments overall.

 

[william the wie]

If we go to war you just shot your 401k in the foot. @ william the wie help this fellow out.

Mike does know what he's talking about but he is asking the wrong question as you pointed out and luck is more important than brains. My highest return ever in percentage terms was sending money to my utilicorp united DRIP in 1998 just before they took over a NZ gas utility with proven reserves. my investment date was after the Asian flu hit NZ and LTCM went under in the US. both of those things blew over before my liquidation order made it to Kansas. My annualized return in percentage terms was in the four figures if memory serves.

The best returns over the past century had been in the Dow Dogs. Basically buying all of the DOW stocks that the analysts consider to be crap. Get a copy of "Beating the Dow" by Michael O'Higgins. You'll laugh so hard you'll cry.

I follow you, and I realize foreign stocks have their own set of risks. A quarter of my 401K is less than 10% of what I have so that isn't going crazy with an overseas investment. That probably was not clear from my OP. I Fully agree about DRIPS, I've had a half a dozen for over 20 years and have done by far the best in those investments overall.

Mike, run the numbers. A DRIP with OCM and reinvested dividends discounts to market is fairly easy to find and the only thing that I have seen that can compete with them for large, dependable returns is writing puts on undervalued issues. Get back to Vita Nelson or Chuck Carlson or whoever and get your European or Asian exposure at a discount to market keep to the margin of safety you know how to work with in comfort. An LLC generally does not cost much more than your expected marginal tax rate at say 3% discount from market and go with that in foreign diversification just google Nelson and Carlson and see which deal you like better. Yeah, it increase paperwork but you are staying within your circle of competence which makes it a whole lot easier to not lose your ass. In other words go with your long suit not somebody else's.

For example, I can tell you truthfully that if I can't get a 40% annualized return I don't write a put. But your learning curve errors will almost certainly be more expensive if you change your strategy than just sticking to what you are doing now and organizing your investments to minimize tax and fee liabilities rather than doing what I do or DF does or anybody else does for that matter.

 

[MarathonMike]

Good point, I opened the DRPs with Vita Nelson originally I'll check into that.

 

[william the wie]

Chuck Carlson has or had a better selection of ADRs and fewer fees because he specialized in Direct Purchase Plans. Vita does DRP and DPPs but foreign companies in particular like specialists rather than generalists advertising their capital needs. I would go with the most providers I could find but after the fees started going up I got out of that market. If BONY is still nickel and diming everything in sight Chuck might be the better bet. WEC or MPL paying fees even with an internal employee DRP was infuriating.

 

[Manonthestreet]

Never heard of DRIPS until now or where to get them.....more of an individual stock buy and hold,,,,,,not rebalancing,,,,alrdy in couple of foreign stocks....couple oil stocks, RDSA and REPYY, and VOD

 

[MarathonMike]

Never heard of DRIPS until now or where to get them.....more of an individual stock buy and hold,,,,,,not rebalancing,,,,alrdy in couple of foreign stocks....couple oil stocks, RDSA and REPYY, and VOD

It's a very powerful investment tool, as I said it was the best performing investment for me over the last 20 years. Like Vita Nelson said in her old commercial, if you invest in DRPs you are doing yourself the biggest favor possible. William provided more detail on similar instruments but they are all about minimizing your fees and maximizing your returns.

 

[Manonthestreet]

Never heard of DRIPS until now or where to get them.....more of an individual stock buy and hold,,,,,,not rebalancing,,,,alrdy in couple of foreign stocks....couple oil stocks, RDSA and REPYY, and VOD

It's a very powerful investment tool, as I said it was the best performing investment for me over the last 20 years. Like Vita Nelson said in her old commercial, if you invest in DRPs you are doing yourself the biggest favor possible. William provided more detail on similar instruments but they are all about minimizing your fees and maximizing your returns.

Never heard of DRIPS until now or where to get them.....more of an individual stock buy and hold,,,,,,not rebalancing,,,,alrdy in couple of foreign stocks....couple oil stocks, RDSA and REPYY, and VOD

It's a very powerful investment tool, as I said it was the best performing investment for me over the last 20 years. Like Vita Nelson said in her old commercial, if you invest in DRPs you are doing yourself the biggest favor possible. William provided more detail on similar instruments but they are all about minimizing your fees and maximizing your returns.

You never hit a home run on and individual stock.....100% return?? So I dont get these from a broker I take it...

 

[MarathonMike]

Never heard of DRIPS until now or where to get them.....more of an individual stock buy and hold,,,,,,not rebalancing,,,,alrdy in couple of foreign stocks....couple oil stocks, RDSA and REPYY, and VOD

It's a very powerful investment tool, as I said it was the best performing investment for me over the last 20 years. Like Vita Nelson said in her old commercial, if you invest in DRPs you are doing yourself the biggest favor possible. William provided more detail on similar instruments but they are all about minimizing your fees and maximizing your returns.

Never heard of DRIPS until now or where to get them.....more of an individual stock buy and hold,,,,,,not rebalancing,,,,alrdy in couple of foreign stocks....couple oil stocks, RDSA and REPYY, and VOD

It's a very powerful investment tool, as I said it was the best performing investment for me over the last 20 years. Like Vita Nelson said in her old commercial, if you invest in DRPs you are doing yourself the biggest favor possible. William provided more detail on similar instruments but they are all about minimizing your fees and maximizing your returns.

You never hit a home run on and individual stock.....100% return?? So I dont get these from a broker I take it...

Sure lots of times. I just never hit a 1000% return that keeps getting bigger with no effort.