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Emerging Markets > US Market : UKInvesting


Looking into moving my investments from Vanguard Lifestrategy 100 due to the over reliance on UK equities.

The common advice is to use the vanguard global all-cap fund. I am slightly apprehensive as this gives even more weight to the US stock market.

Going off my university studies (international relations) over the medium and long term the US will not be the global power it has been the last 70 years and there is a pivot to Asia.

The west economic growth is going to struggle whilst China and Asia is only going to continue as they begin to reach western living standards.

My question to you is why should I NOT be putting my money into equities from emerging countries considering the points above. I am new to investing so it may be I misunderstand how the stock market works.

Having 55% of my investment in US stocks seems like way over reliant on the US doing well economically. If, or more likely, when the US enters another financial crisis and/or recession then my investments would surely drop dramatically. I am worried about this due to the issues of the US has as a country (financial deregulation, trump, etc). Surely diversifying across more of Asia makes more sense as they may avoid a US crisis?

All just questions and I am wanting to learn more.

If anyone does agree with my position. Then how would you diversify using Vanguard or other etfs?



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