Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I purchased shares of FXI in January of 2006. It has also tripled.

I am an "asset allocation" investor - I do not try to beat anything; I am attempting to maximize my chances of average annualized returns.

FXI's trebling turned it into more than 5% of the portfolio. Just this week, I sold much of it during rebalancing. Some money still remains in FXI, because it and other emerging markets are part of the portfolio design.

The real question for you is: what are your goals? are you merely trying to have a stable growing portfolio or are you hoping to make a killing?

If it's the former, trim it back until it fits in with your original plans.

If it's the latter, good luck. You've already admitted that you know it's a bubble and this is a very expensive basket of stocks. Historically things that get beyond their fundamentals eventually have a day of reckoning. Almost no one is skilled at guessing that day until it arrives. Even then, many are in denial until long afterwards.

Compromise: Recoup your initial investment and put it somewhere safe. Then you're still "in" but the losses will hurt less when they arrive.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.