Stop Investing In The World Index

100% of my investing portfolio at the moment is in US Stocks.
The majority of my investments are in individual US companies.
But I also own a chunk of the S&P 500 and a bit of the Nasdaq 100 Index.
And there is a common thesis out there that this approach is a really bad idea.
Because investing in just US stocks carries a huge risk if the US economy or the stock market underperforms.
In this video I share my thoughts on why I disagree.
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[@loutol2952]

Investing only in one country constitutes a concentration risk, regardless of how far reaching its companies are. These companies are subject to one regulator …….all you need is an ultranationalist government or some self inflicted black swan event and it’s good night. The way the US is going nowadays, I couldn’t say this could never happen there. Slightly lower returns on a global etf , but I 💤 well at night.

[@redda2]

Sleep well at night with your lower returns

[@Cassp0nk]

If the USA goes down the rest of us are going with it…

[@theowenssailingdiary5239]

Sweet dreams Comrade. Your exposure isn't hugely lower in a Global etf anyway. If 'merica goes down we are all screwed old mate.

[@edesignworks777]

​@@redda2😂 wonderful answer.

[@JonasBL3]

Have you checked that the global ETFs holdings are in fact global? Often the global indexes are made to reflect the biggest companies in the world, which are american. So you end up with and ETF with "global" in the name, but like 80% US holdings.

[@masbuleinlondon]

Started to watch your videos because we look similar 😅 Thank you for sharing your knowledge, I am learning new stuff.

[@Duncan94]

I watch most of Sasha's videos and also watch most of James Shack's videos - after catching up on both channels it's very clear to me why Sasha made this one haha!

[@SashaYanshin]

I saw that video after James commented. Was actually a complete coincidence!

[@okthisisthelasttimeipromise]

You’re the man. Love your stuff.

[@chilldude30]

That outro music is always such a jam

[@billyhawkins2602]

We love you Sasha!

[@SashaYanshin]

Thank you! 🙏

[@salvadorlopez9629]

this is a great take, thank u

[@adamhartland5751]

Theme music tells me everything I need to know. 👍😅 Great content and the irony puts you over the top. Keep it up.

[@e.t.theextraterristrial837]

Doesn't make a difference if your broker doesn't charge high conversion fees and major brokers don't spear with high conversion fees and convert currencies at the market rate. Hedged funds buy underlying assets using USD anyway at market rate.

[@digil842]

VTI and chill vs VT and chill. That is a good question indeed.

[@MM-sg5cu]

Thanks Sasha! What about a list of your personal Top Ten US companys to invest....?

[@stansheppard8929]

Thanks for this Sasha. Love the perspective and I really appreciate the work and content, please keep it coming.

[@Nature-of-reality]

cool vid Sasha. cheers

[@dominiquethompson1228]

Hey Sasha, great video! Are there any stocks you are keeping an eye on in India?

[@zafiroshin]

I have no idea what is the "neck eye", but I agree with 100% of what you said.

[@eigenvalue9358]

Depends on what you optimize for. I agree; looking at my personal portfolio, while never having lived in the US. But if a friend asks me where to invest long-term, who has no intention to ever research companies or look at the stock market, I recommend VT. The reason is that this will work, even if all you described shifts in the next 10 years, while only giving slightly worse expected results. In the case of such a friend, resilience is far more critical than 1% additional gains.

[@ibrahimciftci9599]

S&P500 would be the best play then

[@AlasdairILoveOxford]

What does VT stand for here?

[@ibrahimciftci9599]

@@AlasdairILoveOxford should be the all country world etf from vanguard

[@benyaminewanganyahu]

yes, exactly. It's about risk, not returns. Shocking that even many people who own these funds do not realise this.

[@benyaminewanganyahu]

Hi Sasha, good points, I get it (biggest companies happen to be in the US). However, that isn't a good argument for *not* investing in companies based elsewhere. The argument for world index is more about *risk* . I.e. the only way to reduce risk is through *uncorrelated* investments. Investing in US base or high market cap, increases correlation (since the rest of the world will never be perfectly correlated). And since we cannot *expect* any investment to outperform any other, you don't lose anything. And yes, you may underperform SNP500 this decade, and underperform gold next decade etc. But that's the point, you will always underperform another asset group of assets - you trade returns for reduced risk. From what you have said, seems like you are doing *active* trading whereas indexing is more passive so it's apples to oranges really.

[@MrGmac2011]

Well said.

[@caioscofield]

100% agree. I'm Brazilian but live in the US (working in tech). US stock market is simply on another level. My portfolio is ˜95% US stocks/etfs

[@howardsmith8723]

Love your videos. On this occasion I don't fully agree. World index is already 60% US and only 10% emerging markets. I like having a world index tracker as a minority part of my portfolio as low cost, large spread and low effort, and can be less volatile than the holdings I have in growth funds. I also think that for investors starting out or just with limited knowledge and/or time it is a good option. Horses for courses.

[@hkchan1339]

The emerging markets are export economies, if their clients in US and Europe underperforms, so do them. Stick to where the money is, not where the cheap labour js

[@bendy230]

@@hkchan1339 economy isnt stock market 🤓

[@bendy230]

Growth historically underperforms value

[@remmond3769]

@@hkchan1339that could change though. Intercountry trade between emerging economies has been exploding in growth. Not so much to us and Europe.

[@sweetsweet3753]

i am non U.S but predominantly invest in the S&P. the only reason i hold some other country stocks is simply foreign currency risk/diversification...

[@stuartporter5428]

Hi Sasha. Thanks for your videos. What method or platform do you use for investing in usa stocks and shares? I'm in the uk too.

[@SashaYanshin]

I have links to my favourite apps in the description. I use all the different ones. Check out my videos on best investing apps and best ISAs (search on the channel) - lots of info in them! 👍

[@sanjayh8645]

When the markets previously crashed I like others found myself drifting towards 'nowhere else left as pound is also going down' . In the end the US fell the hardest. Once (twice?) bitten twice shy.

[@darrendrew1281]

The top 10 holdings of VE are almost identical to all of the US large cap ETFs. All US based companies.

[@armstrong2450]

That was helpful. I had a doubt with what I was doing. But now I will keep my SIPs going in Tesla, Microsoft, Amazon and Google.

[@markgriffiths9377]

Hey Sasha, nice video. I used to invest in both VUSA and VHYL until I realised that: a) They're both dominated by the megacap S&P 500 companies anyway b) The returns from VHYL, while not being anywhere near as bad as VUKE, just aren't there It's honestly not a bad idea to just dollar-cost average into the S&P 500 every month. Personally I like to have some individual companies to stay motivated to invest, but I know the sensible thing is just to put it into VUSA as I'm extremely unlikely to beat the market (but I want to try). People get greedy and think that 9% is a bad return when it's actually a great return.

[@weisseadler]

9% it's not bad the problem is the time window in which you make that, if it's per year for DCA (or ECA) it's not bad "for a retirement fund" anyhow you need to be as closer as possible to 10%/year in order to say it's perfect, more it's always good but 10% it's perfect for the purpose of DCA (or ECA) the only enemy remaining being the inflation that keeps eating in to your 9%, 10%/year. I guess ECA on VUSA (denominated in Euro) it's amazing.

[@xinhongl]

total agree.

[@dnap1991]

in 2000: over 3 years nasdaq down 80pct. During that same period ppl were shouting recession in Europe yet EU cyclicals did great on that period paying fat divs and up in the end

[@polievets1]

a Very good point

[@ob1o675]

This is due mainly in part to the internet and high speed connectivity. What Japan did not that during their industrial height.

[@third7715]

Are you buying your s&p 500 etf in gbp or will you look for usd or a hedged version ?

[@sky.london]

I read the title, and was like... ahhh crap what!!

[@SashaYanshin]

What could it be?!?!

[@sky.london]

@@SashaYanshin very interesting topic as always. I like it when u take a subject that seems logical but when u throw data at it it’s wrong. 🙌

[@domferris9963]

The problem is if this happens, and the US just completely dominates the global economy, VT will reflect that. Instead of 60% it’ll be 80% or 90% whatever it is. It’s just the global market cap

[@dnap1991]

international small cap value has outperformed S&P every decade/ no exception. Even at the very top of nikkei bubble if u bought japanese small cap value index u d have made 4,6pct a year for 30 years vs still underwater if u bought a chunk of the largest caps. And the best value is in Europe at the moment (even more true as EURUSD at a 25pct discount to PPP which is the most decent long term indicator). This favors EU exports etc. You have tons of niche markets and/or world leaders in their sector in europe (valeo which benefits from EVs is like buying tesla at 20 bucks, Socgen (not just a bank trading at 30pct tangible book but EU nr1 online + controls world leader in car leasing, etc. ). The story about silicon valley etc. well basically it means being concentrated in the tech sector... which is where u ll see the largest unpredictable shifts overtime as tech is mostly disrupting ... tech. Tech makes the old boring companies more efficient though

[@kippsguitar6539]

Can I borrow your crystal ball? Investing looks so predictable

[@Whoop0]

This is the sort of controversial out of box stuff I subscribe for, great video. Certainly food for thought. One of the core problems with this approach however is you're not diversified across governments, if some current or future government meddling breaks the economy or the companies somehow you've got all your eggs in one basket.

[@SashaYanshin]

Thank you and good point. Although I perceive the risk of that significantly screwing things as relatively lower than other risks.

[@Whoop0]

@@SashaYanshin Perhaps, hard to quantify imo. Have you seen the UK recently 😉

[@SashaYanshin]

@@Whoop0 😂😂😂 Don’t remind me!

[@espesq2391]

I agree, so you must be right

[@lucabardelli3903]

need some help... i am 21, i have about 10k invested which is split between VUSA, SMT(scottish mortgage investment trust) and a couple of individual stocks. I dollar cost average every month but i am sitting on about 5k in cash do i buy lump sum of VUSA or put it in a really highest interest rate savings account or guaranteed bonds by NS&I (which is locked away for a year) any thoughts and ideas would be great :)

[@KJ-yk4nq]

Great video again. At most fundamental level rest of world typically following US lead and many US companies having global reach in todays world. No guarantees of course but seems like sound reasoning to me

[@mr.t993]

unconscious bias is still personal bias

[@meehall3960]

JGGI is my main holding . I can’t remember why I bought it in the first place but it’s been fantastic.

[@TheCompoundingInvestor]

Really interesting. I can’t buy individual overseas stocks on my Barclays platform but I can buy ETFs and currently own ISF, IUSA and VHYL.

[@kippsguitar6539]

Excellent channel

[@TheBooban]

Well, one invests where one can. If Google was based in Antarctica, there is no broker with access to that exchange. Citizens in many countries simply cannot invest abroad. Govts. do not let their money flow outwards. Still, US exchanges are the most accessible globally and therefore most investments flow there. But it would be difficult for me to buy a stock in Brazil or India.

[@carlostrato754]

Yes, i see it the same way

[@AM-om5xz]

How are you heading the cable risk?

[@vitorfranco7123]

Hey Sasha, to begin, thank you for your view regarding World Index vs S&P500. Really good debunked. You have come a long way since your early videos. Congratulations. I do have question, what ETF would you consider for the Nasdaq-100 for investors in Europe ?

[@Baby_Shivank]

Hey Sasha, your videos are very good and informative. Being from India I am already investing in Nasdaq as now there is opportunity to invest at discounted rates. 👍

[@capri2673]

Do you invest in the Indian index?

[@Baby_Shivank]

@@capri2673 Yes... I invest in Indian index... Along with it I am also investing in Nasdaq ETF.

[@oppai_seeker6329]

​@@Baby_Shivankhey isn't Nasdaq risky since it's tech heavy basically thematic index?? Why not invest in broader market index for example s&p500 or total us stock market(from vanguard)

[@oppai_seeker6329]

​@@Baby_Shivank btw am from india aswell and did u made any changes cause of recent tax change??

[@dali8444]

Prosus & UMG are two solid businesses on the AMS, worth a look!

[@adamcunningham6746]

Hey Sasha. Love the videos. I think that 75% of my portfolio is in US, about 20% in UK, and about 5% in EU (France/Germany). 😲

[@IamGrimalkin]

I think it's reasonable to overweight US stock if you think the US will outperform like you do. I also have a lot of sympathy for US investors who stay out of international investments due to currency/political risk and dividend withholding tax; although since I don't live in the US the opposite applies to me. I'll also say, your point about Japan is a good one; and I wouldn't see being US-only as heavily risky. However, I'd disagree that it's the best approach. Firstly, I wouldn't necessarily say US stocks are the most undervalued but justifying that will take detail so I'll leave that for now. But most stock markets seem somewhat undervalued right now anyway. What I will say is that while you're right that large US companies have diversified demand; that doesn't mean that adding international won't improve diversification. If I was bullish about the US, I'd overweight the US but still include a (smaller) international allocation. Firstly, there's also the supply side to worry about. You cite California companies attracting worldwide talent, but that should be at least partially priced in (although of course if it's not fully priced in that's bullish for the US). But if, say, the US government introduces a lot of aggressive anti-immigration policies, that advantage disappears and US companies are worth less. As another example, there could be natural disasters in California which hit the Californian infrastructure these companies rely on. Secondly, you don't necessarily need to add another area to make something more diversified. Imagine you were invested in a cap-weighted s & p 500 etf; except 50% of the companies in there were randomly removed. It probably wouldn't be missing any particular sector or customer base, but nevertheless it would be less diversified than the full s & p 500. I see it as similar with vusa vs vwrl.

[@wread1982]

I agree

[@ADaza1015]

I totally agree. I live in Canada but I invest only in US.

[@livingalone5737]

Opinion on etsy stock please I think it will outperform

[@paulevans2246]

Thanks Sasha. Great vid 🙏 out of interest how much of your port is in S&P vs Nasdaq 100 vs stocks? 🤔

[@hipanderos8861]

Nasdaq 100 better, we are at bottom now. All in nasdaq 100.

[@josephhughes1498]

I expected this to be more about how global index funds aren’t actually very diversified because of the massive US tech stock allocation

[@marcuschalkley2355]

uk worth a go bruv now that the the minx trussingtons is i charge x

[@SashaYanshin]

🤣🤣🤣🤣🤣

[@Outworlder]

The brain drain thing is very real. I am an example of someone who fell for the Silicon Valley siren song. But so did almost everyone else I knew, including the most phenomenal engineers I know (a few went to Australia, New Zealand, several European countries and Canada instead). The ones who didn't leave the country outright are nonetheless working for foreign companies, mostly in the US.

[@Aenion11]

I know this is 2 months but if you look at e.g. VWCE, the world index is already 60% US. It's one of the reasons I split it into 4 ETF so that I can have 10% EU, 10% S&P500, 5% China, 5% EM I get my exposure to Canada and Australia through mining and energy ETFs

[@iknoorsingh7454]

Hi Sasha, how do you invest in NASDAQ 100 while being in UK? Is it invesco Nasdaq 100?

[@demurgetroid]

EQQQ or EQQU index or 3x leverage QQQ3/LQQ3

[@raulgil8459]

Brilliant analysis...!!!

[@SashaYanshin]

👍

[@ldg1414]

Not to mention paying foreign withholdings taxes on dividends, which is usually a fixed amount and it's a lot to someone in a low tax bracket like me in a market that pays a lot of dividends. I don't understand why people go on about fees and yet never bring up foreign withholdings tax when talking about foreign investments. As far as the Japanese bubble, those pe ratios were like 60-80, it was nothing like what the us stock market is valued at now. Japanese value stocks from around that time did pretty well going forward. Compare us small cap stocks and they are valued pretty much to the same degree as international stocks.

[@steveemmett-inotherwords]

Me too!

[@SashaYanshin]

What a coincidence! :)

[@n.8899]

What about Fiverr which is israeli company? Are you invested through Nasdaq.

[@bornfree8487]

By that logic why not hold the best companies each country offers given that to become successful they need to eventually globalise their activities I’m sure the consumers of Ozempic products are truly global. Why not own a slice of Novonordisk even though it’s a Danish company?

[@sPanKyZzZ1]

I think you are getting it wrong. The idea of a global fund is that if money move from one place to another you will not feel it in your investment because owning stock across the glob will gurantee that you capture those money in other markets. Also all global indexes are alreade US and developed markets heavy, they are design to only dip a little bit in the emerging markets growth if there is any. Also any huge growth in emerging markets will come at an expense of moving money from a developed market hance you feel the impact on your investment would be minimal. Not to mention the accumulating etfs and low fees that will save you lots of money.

[@josueherrera5049]

Would you recommend investing in Vanguard S&P 500- apparently it’s like the top 500 companies in US and it’s almost like investing in the American economy. Am I right ? Would like some advice / knowledge on this

[@markmahood3093]

The s&p 500 is exactly what you have said. It's the top 500 companies in the USA.

[@josueherrera5049]

@@markmahood3093 worth investing ?

[@markmahood2019]

@@josueherrera5049 need to do your own research. What suits 1 person may not suit another.

[@josueherrera5049]

@@markmahood2019 honest answer- cheers

[@bodycounter9386]

I would personally prefer the Core MSCI World index over the S&P 500. My plan is to invest over the next decades and too many things can happen in that time to be focused on a single country. My opinion though.

[@okunrin3]

One thing that shaha is not saying is that he doesn’t make money on investment, his main income is KZbin! Infact he would rather lose money on his investment for the sake of making a KZbin video. So…what I’m saying is don’t listen to him. He is an entertainer.

[@EpicSlug]

Fun Fact: Apple has a higher market cap than the entire UK FTSE 100. You could also argue it alone is more diverse and financially secure than the entire FTSE.

[@jmc8076]

Some families worth this.

[@bodycounter9386]

Nobody invests into the UK FTSE 100 though? The FTSE All World is still 60% American market share. The top 10 holdings (making up 20% of the total ETF) of the FTSE All World are all American companies.

[@tomonetruth]

@@bodycounter9386 FTSE 100 is still a very popular investment in UK. I think for most people, some domestic overweighting is a good idea. Personally I'm putting 25% into uk, which is probably too much.

[@stracer42]

This is such great noninvestment advice.

[@anthonyqcolosimo5374]

I do a 2055 target date fund. It has international and US.

[@gustavodiaz4689]

I been saying the same thing. Asian markets are screwed, European company’s are also screwed there is really nosy to put your money outside of the US market.

[@kimbarsegyan]

Why are Asian markets screwed?

[@barbarianlife]

The US is looking strong. I am happy to have most of my investments in US companies.

[@havencat9337]

where can UK investors invest now when the Pound is so weak? some UK stocks?

[@wwesheamus100]

Hi Sasha, agree with your points. I have been investing in QQQ and world index, but recently have switched to SNP500 instead of world index. What’s your opinion on what should I do with my world index, leaving it there or sell and buy SNP500?

[@Starstreak170]

Seems like your chasing performance and switching at the worst possible time. US has outperformed the last decade. Why do you think that will continue indefinitely?

[@robert435230]

There's a lot of overlap in your indexes. Have you checked the holdings? You'll find they for the most part hold the same companies in similar proportions.

[@bendy230]

QQQ and S&P are both large cap and growth/blend funds. Historically, small cap value stocks have produced better returns and better risk adjusted returns. I recommend some here.

[@kemingyu4266]

@@bendy230 hey bendy, I too watch Ben Felix and Sasha, different personalities but both very educational. Just wondering what tickers you buy for value tilted and small cap tilted stocks for US, and international? Any tickers to recommend?

[@bendy230]

@@kemingyu4266 hiya, yeah AVUV and AVDV are my picks for US and International (ex us developed) small cap value funds. Dimensional funds have been the gold standard of small cap and value factor focused funds but they were always just mutual funds (not exchange traded funds). Then some old employees of dimensional started avantis which offer the above mentioned AVUV and AVDV. Dimensional has since made ETFs but actually avantis’ ETFs have lower expense ratios while also being slightly smaller and slightly more value tilted.

[@havencat9337]

i dont think is healthy to invest into just one market. for example US market. In the future they might not be the best performing.

[@kippsguitar6539]

But the s &p 500 isn't really one market as it's hugely international in nature and revenue and well diversified

[@Jamie77827]

I don’t get your logic. It’s just EMH, every company is worth what it’s worth. Why make the argument no one can pick stocks and then pick them yourself? The only thing you need to do, in my opinion, is rank the world and have the percentage of your portfolio in the exact percentage of the total world market cap. Nothing else matters

[@Jamie77827]

The only argument is that fees are higher on world than US, but you’re more accurate to the total world market cap, meaning your more inline with the intelligence of the market

[@Jamie77827]

Everything is priced in, research is pointless, and if you beat the market it was only through luck.

[@fakealias]

While I do agree, I still hold some VXUS as a tilt.

[@soyboypersonalfinance1138]

STRONG MAN IS COMMING FOR YOU

[@Stupot2024]

The UK ISA is going to allow an extra £5k of Tax free investment in UK only shares. Would you look at investing in UK for the value it represents presently or keep the money for the next tax year and contjnue to invest in the S&P index? ( I intend to max my ISA across the S&P and World Technology Index anyway.

[@me-myself-i787]

I think it might be worth it to invest the money in the UK. Look for companies with a high return on non-current assets (net income divided by total non-current assets) and low P/E ratios. Nvidia has a RONCA of 139%, which is very high, but could serve as a useful benchmark for comparing UK companies to. TSMC (TSM) has a RONCA of 39.7%. 3i (III.L) has a RONCA of 21.5%. Shell (SHEL.L) has a RONCA of 6.6%. AstraZenica (AZN.L) has a RONCA of 8.3%. HSBC (HSBA.L) has a RONCA of 0.77%. Unilever (ULVR.L) has a RONCA of 11.3%. Rio (RIO.L) has a RONCA of 12.1%. RELX (REL.L) has a RONCA of 14.8%. Diageo (DGE.L) has a RONCA of 13.8%. NEXT (NXT.L) has a RONCA of 34.9%.

[@jkimo1178]

What are your thoughts on CG’s most recent video on TSLA?

[@SashaYanshin]

Not much. Just a guy pretending he knows upcoming short term market movements based on tea leaf patterns.

[@jkimo1178]

@@SashaYanshin Would be great to see a video refuting it all……. Your witty remarks always bring a smile.

[@shaereub4450]

I'm just investing in VTI, VEA, VWO, & KOMP.

[@KelltheKid]

Same for me. Betterment’s Innovative Tech portfolio I believe with continue to serve well.

[@LookatBowen]

Yup, number 5 on that US company list is an interesting global investment. I believe it will dominate every continent. Way better in my opinion then an ETF or index. Great video Sasha!

[@DWDAmateur]

Cryptic - you actually made me Google that 🤣🤣🤣. See you in 10-15 years.

[@LookatBowen]

@@DWDAmateur no need to Google it, it was the 5th US company on the list Sasha shared. 🤪

[@johnny10gunz19]

Mine is all in US stocks too I have a few UK stocks, but I find the ftse moves so damn slow with very little vertically innovative businesses.

[@SashaYanshin]

It’s interesting how similar the make up of the FTSE today looks like the S&P 500 in the 70s and 80s. Banks, Mining and other raw material companies and Tobacco.

[@johnny10gunz19]

@@SashaYanshin Definitely, no innovation not even much horizontal globalisation, worryingly. Our government stifles innovation.

[@chrisf1600]

Remember that value beats growth over the long term. Investors routinely overpay for lottery-ticket growth stocks, which leaves those miners and tobacco companies cheaper than they should be. In the long run, those cheap stocks have more chance of making you rich.

[@TrumpForPrison2023]

@@johnny10gunz19 And Brexit was supposed to make UK into a powerhouse. They rejected support from EU for their own national growth. With what I've seen from Liz so far, it's not looking good.

[@johnny10gunz19]

@@chrisf1600 Yes, but rather have US tobacco or value stocks. I've got value uk banking stocks etc I'll be 80 years old by the time they make me any serious money.

[@ianpatton632]

Very helpful thks

[@fredatlas4396]

2000 up until 2009 was a lost decade for the US stock market. Japan had more than 10 yrs lost. If you had put $10000 in the Vanguard S&P 500 index investor fund in Jan 2000 for example, by Dec 2009 it would be worth $9016 with dividends reinvested. A total international ex US Index did show positive returns, but still not that good a return.

[@147breaks]

10,000 but then worth 9000 ,shit that 😂

[@fredatlas4396]

​@@147breaks I guess you either have to have somewhat longer than just 10 yrs or and you need some extra diversification, add a diversified low cost bond index fund or etf to your portfolio and rebalance once a year to maintain your asset allocation. So you might be 60% equity and 40% bonds or whatever you feel comfortable with depending on your time frame and ability to bare risk, stay the course and not be tempted to sell or change your strategy. You need some money you can afford to leave invested for the long term

[@bodycounter9386]

In my opinion the Core MSCI World index pretty much has your approach in mind but with better diversification and not excluding the big players outside of the United States.

[@Putseller100]

Strongman approves lol

[@AlasdairILoveOxford]

I am just learning baby steps to investing in stocks but my query is.... Don't you all think that the US dollar is being artificially propped up and so while in the short term, USA stock market looks stronger, is it not just a mirage?

[@AlasdairILoveOxford]

Ok, I found your email address now, so I will message you on email tmrw. Thanks

[@user-sg1wn7ho2r]

The US is already a major part of the World Index and you therefore get good exposure to big tech companies (which have driven recent returns) such as Microsoft and Apple. For the sake of diversification (and because no one knows the future) the average person is far better investing in a world index rather than only the S&P 500. Indeed, I would recommend a World Index that includes small and medium-sized companies so it's only only very large companies you're invested in. On a personal note, it isn't healthy for consumers to have some dominance by a few large American tech firms, which behave in an anti-competitive way and start over-charging customers and resting on their laurels. I hope we see new tech companies coming and and knocking the current incumbents off their perches (perhaps from countries outside the US).

[@ignoreme1141]

Workd stock is total diversification, only free lunch in investing.

[@liam.4454]

If the dollar dies out and gets replaced as the world reserve currency will we lose all our money ?

[@davidjones4130]

Surely more long term growth potential in the emerging markets!

[@tomw485]

Surely there is nothing sure about the economic future

[@me-myself-i787]

But companies from developed markets could easily invest in emerging markets, and would probably do a better job doing so than local companies.

[@munteannicolae4418]

You mentioned silycon valey several times as a dream job... now is just a dream

[@Blackfire-Five]

Quick opinion. I’m 40% in VUSA, 40% in VRWL and 20% in ISF. Thoughts? Please be nice 😊

[@me-myself-i787]

The UK and the US are already in VWRL, so investong in them separately skews the weightings and increases risk. Plus, the UK is performing terribly. Also, I'd recommend VWRP over VWRL, because VWRP requires less effort on your part. With VWRL, you have to reinvest dividends yourself, whereas VWRP does it for you, allowing you to get the same returns with less effort. And not reinvesting dividends would significantly harm returns. But also, SSAC is better than both judging based on past performance. Although, I'm surprised SSAC's past performance is so much better, considering they're basically the same thing. But they're run by different companies.

[@M3gaHaloNoob]

You are not calculating the risk factors of concentrated investment. When diversifying globally you lessen the risk (possible damage x chance of it happenning) of cases like: - Political mismanagement - too weak or too powerful currencies - geographical anomalies - Sanctions and other regulations (we saw what happened with russian stocks in the worlds exchanges this year) While i dont think and hope that the US has any problems, anything can happen. Diversifying isn't therefore "free lunch". There are of course oppurtunity costs associated with it. Great and interesting to hear viewpoint nonetheless

[@karli697]

thoughts on vusa?

[@SashaYanshin]

It’s just the European equivalent of VOO - The S&P 500 Index. A great way to invest in US stocks with very low fees.

[@1292liam]

or GPSA

[@GeoffreyEngelbrecht]

Isn’t there a big risk regarding the currency exchange of investing 100% in the US. When I first came to the UK 30 years ago the pound was roughly 2:1 with the US dollar. Today it is closer to 1.24:1. Right now the pound is very low. If it keeps dropping in value then you will gain something but if the reverse happens and the pound starts rising again will this not reduce your gains on the market.

[@tomonetruth]

I think you're exactly right, but didn't the guy say he lived in US now? Regardless, 100% anywhere seems a little reckless, 100% in a single foreign market with a foreign currency would be foolish.

[@wingtsun1]

I could not make up my mind, so I went 50% s&p 500, 50% global index and will never rebalance. I will get the average and hopefully they will both increase.

[@massafelipe8063]

Isn't global (VT) like 55% US allready? So you re around 75% US which is OK since many experts reccomend that ratio to be optimal long term.

[@wingtsun1]

@@massafelipe8063 I did consider the heavy overlap, but think its okay as long as the US keeps being dominant. If not the global index will phase me out automatically.

[@massafelipe8063]

@@wingtsun1 I went for msci world quality and us value. Still around 75% US, which is more than enough US.

[@kippsguitar6539]

​@@massafelipe8063haha of course it is, some Sharp cookies here

[@kippsguitar6539]

​@@wingtsun1oh dear oh dear

[@Dr.JubairsFinance]

I agree, "the simple path to wealth" is a good thesis to why US only stocks is decent strategy

[@martinfarrow2825]

but he does say if your not in the us then vwrl would be better.

[@Dr.JubairsFinance]

@@martinfarrow2825 Yes, but his reasons for US heavy portfolios make sense, due to the exposure they have to global markets

[@kippsguitar6539]

​@@Dr.JubairsFinanceeverything makes sense after they just went up and retrospective investing is simple

[@markshamp3699]

I already have enough trouble picking stocks in the most stable buisness friendly geographicaly dominant country in the world. Why in the hell would I try picking stocks in any other country?

[@stevegeek]

I notice a lot of “Global” funds seem to closely follow the US stock market anyway, since many of the biggest companies are US-based. Personally, I have a big chunk of my S&S ISA invested in US market, but my pension (Scottish Widows) is mostly in their so-called Balanced fund, which is a mix of countries, equities and bonds. It’s supposed to offer “steady” growth, although (like many other funds I guess) this year it’s been going backwards mostly 😢

[@runabath]

Buy US stock with UK £ down 30% that means it got to go up alot before see a profit