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Now obviously we want some foreign ownership for diversification. But the point of diversification is to lower risk, and some analysts say that any more than 30-35% foreign content increases risk from the currency markets more than it helps from diversification.


"Some analysts"????

Here at the FOOL we like to base our actions on our own founded info. -DD (due diligenge). Analysts, smanalysts.

Take the grand daddy of all CDN. mutual funds -Templeton Growth Fund, as of February 29, 2000 (a global fund):
30 years: 16.1%
since Nov. 29, 1954 (~45 years): 14.1%. I have seen it as high as in the 18teen%.

I know many people, and some financial planners, who would love to have this kind of long term performance from any fund in their accounts, or for their account period.

There are many other foreign funds with Long Term records that blow the pure CDN. content funds out of the water. Sure, never put all your eggs in 1 basket, but just be cautious when using an analyst's thoughts. You can relatively easily research the required info now-a-days through books and web sites. Using the mutual funds's web site and the Globe & Mail may be starting points for people who do not know this - I'm not suggesting you do not.


Just my 2 cents worth on a subject dear to my heart.

Invest in what you know. Not what some analysts says. Remember, his job is to voice an opinion, not to make you money. Some analysts are notoriously incorrect, as are some financial planners. I've met some.

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