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URL:  https://boards.fool.com/john-if-you-think-us-assets-are-at-historic-highs-21742686.aspx

Subject:  Re: Euro savings? Date:  12/12/2004  7:18 AM
Author:  SuisseBear Number:  11411 of 36651

John

If you think US assets are at historic highs then you must also believe that many assets in many countries are also at highs.

Agreed. As we know, even Buffet has great difficulties finding value investments. So do many corporations that are currently sitting on huge piles of cash...


If all asset classes are at historic highs then you need to sit on the sidelines or find a better way to hedge the risk.

Perhaps not the worst option, although there are SOME pockets of assets left that are not overvalued.


If you expect the USD to drop significantly while see very little appreciation then maybe non USD is good (some extra overheads need to be factored in).

Given the attitude of Bush & Co vis-a-vis budget deficits I indeed see the $ on further shaky grounds. However, extended technical rallies are possible any time. All that said, I consider currency and regional diversification a must for any portfolio.


If you can produce 12% annual returns in the US market (locked in for the term of the investment) is there much added advantage to looking outside the US?

I (and probably the rest of this board) would appreciate your advise on how to lock in 12% while even LT $ treasuries are paying sub-5%?


SB
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