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Author: Aleeb One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75523  
Subject: Do I need international exposure?!? Date: 3/8/2014 8:47 PM
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Fools I need your advice!

Here's how my accounts are laid out, I need to know if I should have some international exposure in either my TSP or my wife's 401K

Our Roth IRAs = Individual Stock investments mostly based off of TMF recommendations

My TSP - Currently investing in the fund option that Tracks the Dow
Her 401k - Currently investing in the fund option that tracks the S&P 500.


What should I change? Do I need international exposure? My thought process is that I have a firm belief in the future of America and my current international exposure comes from the companies in our market that deal internationally.... thoughts?
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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74434 of 75523
Subject: Re: Do I need international exposure?!? Date: 3/8/2014 9:07 PM
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Once upon a time, a major economic event in Europe, Asia, or the Americas might take weeks to reach the other international markets. Hence, business would out of sync. A boom could continue in Asia based on orders in hand for quite a while after a crash in say Europe or America.

But now with electronic communications, the world knows instantly. Wait and see may take a while, but order cancellations can begin arriving within hours. In short events tend to be global, and they are synchronized. So international is much less of a hedge than it used to be. Similarly many US companies are now multinational with major overseas interests. Some derive over half of their revenue from international sales.

Many would suggest that you should own international investment. International mutual funds are the best way to do it. And if you feel that economies in certain areas are likely to do better than the US, you can focus your investments in those markets.

International investing can be a winner, but in recent times not a barn burner. Not a bad idea, but not a high priority in my experience.

As to your investments, the Dow to me is a bit narrow. It is only 30 stocks. They tend to be industry leaders but also mature and hence not high growth stocks. A broader index that included small caps might be more appropriate. VTI is one from Vanguard, but there are others. You might also consider a growth fund or hot sector funds if you find some you like for a portion of your funds.

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Author: Aleeb One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74436 of 75523
Subject: Re: Do I need international exposure?!? Date: 3/8/2014 10:26 PM
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Thanks for the input. I changed the allocation of my TSP to a fund that tracks the S&P 500 and now her 401k will go into the Vanguard Mid Cap Index Signal (VMISX)

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