Do You Really Need International Diversification? 10 Top Investors Debate

[@chucks222]

The clips of different perspectives on a single topic are really enjoyable. Would like to see a little synthesis from the two quants in the podcast though. What are reasonable strategies to try and benefit from diversification that don't assume mean reversion will happen next year, but rather might take a 5-10 years? Are there rebalancing rules that let the winners run a little longer? Are there currency or market hedges that help protect returns? Still feels like mainly a personal call of how committed are you to believing historical averages and reversion to the mean.

[@mikezuraw6420]

Excellent variety of people, perspective, and analysis. Thank you.

[@ExcessReturns]

Thank you!

[@Tala-Ironside]

Thanks for this episode!

[@ExcessReturns]

Thanks for watching!

[@stingray1381]

Fantastic compilation.

[@ExcessReturns]

Thank you!

[@jamesmorris913]

I heard another commentator sum it up very well.."Europe is a museum, Japan is a nursing home, China is a jail..unless those dynamics change, OF COURSE, I'm only investing in the U.S." Makes perfect sense to me, too.

...and all of it is reflected in valuations. Strong economy doesn't mean big gains on stockmarket. There is actually no correlation beetween GDP and stock market return. You can make lots of money on bad companies if you can get them cheaply. And you can Loose money on the best stock, if you buy it for too much.

[@dfolegna]

My 2 cents: over a period of many decades, not a single country can be on top, so global diversification makes more sense. On a shorter scale, 1 or 2 decades, the US has such a huge advantages as a country ( technology, research, military, judictial system, etc) that is very hard to beat. So if you are 22 yrs old, buy global, if you are 50, buy US

[@Bobventk]

36:30 Rick has a long history of saying some REALLY goofy and wrong things, and this is one of the many. “I should get 3% real from Global equities” The 10 year TIPS yield rn is 2.25% 😂 I 100% agree that most people have far too optimistic assumptions on returns, but BRUH. A ZERO POINT 75 erp?? 🤣

[@Scdoo100]

He said 3% real and after taxes.

[@Bobventk]

@@Scdoo100 still VERY low for a base case assumption.

[@tacocruiser4238]

Historically, the best way to gain exposure to China was to buy stocks of Australian mining companies.

[@Bobventk]

4:05 this sentiment has been proven wrong ad nauseam

[@stiffeification]

You can easily get the balance Andy talks about by currency hedging. In crashes all stockmarkets are correlated. So you can easily currency hedge your US bonds with Yen and going into Japanese stocks for example. You can also go global stocks + global bonds hedged. I dont see where this is lacking balance.

[@freedomlife3623]

How could your guests don’t know Chinese in the Mainland can’t invest in companies outside of China? You just lost any credits.

[@planaria01]

I believe in diworsification (your 10th best idea is worse than your best idea), but every time I learn more on India I have fomo

[@ArunRamakrishnan]

India is a bubble and you have all sorts of cross border capital and currency effects. Most dollar investors have been taken to the cleaners till 2021 due to a weak INR

[@planaria01]

@ Is there an economy that’s growing faster than India though?

[@brock8232]

Stock markets and GDP are not identical

[@Scdoo100]

Well this was confusing 🫤 We’re probably in a bubble that could pop at some unexpected point in the future, so we should diversify and rebalance. But diversify how?

[@jawsh5628]

A Sharpe Ratio portfolio optimization using ETFs. There's a solid section in the latter half of A Random Walk Down Wall Street that has examples of an internationally diversified portfolio. You should probably update it with more recent figures though