Do you believe this international SWR data ?
Posted: Sun Mar 13, 2005 5:17 am
Found an interesting table and article. This table esimates performance of various mix of domestic / international stocks:
http://www.fundadvice.com/FEhtml/Invest ... able2.html
Here's the base article and another table:
http://www.fundadvice.com/FEhtml/Invest ... /9903.html
http://www.fundadvice.com/FEhtml/Invest ... able1.html
Note that the information is dated - late 90's (a lot has happened since then...). And the withdrawls start only at one point.
And I'm not sure of the source / veracity of the data. But it is interesting, if true.
I keep believing that:
1. Long term domestic and international equity returns are comparable
2. International lagged US for over a decade, 1990's +
3. The next decade will show both domestic and international return lines converging (US lagging, international doing better).
4. Having 40% of your equities international has to help diversify and reduce volatility / risk
Does this make sense ? Is it "bet your portfolio" guidance ?
I was at local Fidelity office last week - I overheard several representatives in cubicles telling clients "70% of your portfolio in stocks, 30% in bonds, with 10% international"
I just can't see doing that right now !
http://www.fundadvice.com/FEhtml/Invest ... able2.html
Here's the base article and another table:
http://www.fundadvice.com/FEhtml/Invest ... /9903.html
http://www.fundadvice.com/FEhtml/Invest ... able1.html
Note that the information is dated - late 90's (a lot has happened since then...). And the withdrawls start only at one point.
And I'm not sure of the source / veracity of the data. But it is interesting, if true.
I keep believing that:
1. Long term domestic and international equity returns are comparable
2. International lagged US for over a decade, 1990's +
3. The next decade will show both domestic and international return lines converging (US lagging, international doing better).
4. Having 40% of your equities international has to help diversify and reduce volatility / risk
Does this make sense ? Is it "bet your portfolio" guidance ?
I was at local Fidelity office last week - I overheard several representatives in cubicles telling clients "70% of your portfolio in stocks, 30% in bonds, with 10% international"
I just can't see doing that right now !