Stock allocation for a person with no "home" country?

Discussion of the Stock portion of the Permanent Portfolio

Moderator: Global Moderator

Post Reply
yuna

Stock allocation for a person with no "home" country?

Post by yuna »

Hi, I'm new to the forum.  I don't consider myself to have a "home" country.  I've lived in 4 continents: Asia, Europe, North America, and South America.  What should be my stock allocation?  (I'm planning to use only ETFs.)  If I just buy a total international stock index, I feel like I may be too heavily weighted to North America.  What do you guys think?
User avatar
craigr
Administrator
Administrator
Posts: 2540
Joined: Sun Apr 25, 2010 9:26 pm

Re: Stock allocation for a person with no "home" country?

Post by craigr »

Keep in mind that the international index overweights north america because the US is still something around 40% of the world's economic output. So it is justified on this level. But if you don't have a home country I would consider diversifying around the regions where you plan on spending most of your time. The big thing is considering your currency exposure as you move around.
Indices
Executive Member
Executive Member
Posts: 245
Joined: Sun Apr 25, 2010 10:51 pm
Contact:

Re: Stock allocation for a person with no "home" country?

Post by Indices »

I have written about this on my blog. You should invest in the currency of the country you wish to retire in. If it is a developing country, then invest in dollars or possibly euros. You want to avoid currency risk at all times. Investing for most of us is about retirement anyway.
D

Re: Stock allocation for a person with no "home" country?

Post by D »

I'm in a similar situation, and while I was thinking about diversifying over all possible areas where I might end up retiring, I decided to stick with USD-based portfolio with USD being world reserve currency. It seems to me that USD being world reserve currency plays a big part of the overall PP philosophy and design and as such I feel that all other currencies are riskier and unnecessary from PP perspective.
murphy_p_t
Executive Member
Executive Member
Posts: 1675
Joined: Fri Jul 02, 2010 3:44 pm

Re: Stock allocation for a person with no "home" country?

Post by murphy_p_t »

Yuna,

Have you found a satisfactory solution? Or specifically ruled out anything you were considering? (I saw you had similar posts in cash & bond section also)

Also, what broker do you find useful, in particular if you are a US citizen?
Post Reply