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There are a lot of behavioral finance errors that we all make. One common one is the home country bias. People invest most of their money in their own countries markets. Even in small countries, like Thailand, you will find this. It is particularly bad in smaller countries, because they may have only one industry. For example, most of Australia’s economy is mining.

But even in the US, our market is overvalued now, and it would make sense to have some money overseas.
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No. of Recommendations: 3
There are a lot of behavioral finance errors that we all make. One common one is the home country bias. People invest most of their money in their own countries markets. Even in small countries, like Thailand, you will find this. It is particularly bad in smaller countries, because they may have only one industry. For example, most of Australia’s economy is mining.

But even in the US, our market is overvalued now, and it would make sense to have some money overseas.


I don't think this is what's typically considered a behavioral finance decision. It is perfectly rational to invest in what you know. Invest where you understand the economic and political environment. In addition to that, there is also the hurdle of currency risk when you invest in a foreign country.

Elan
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But even in the US, our market is overvalued now, and it would make sense to have some money overseas.

I disagree with this. I am 100% invested in US-based companies, like Twilio, Okta and MongoDB, because I know them very well. I work in IT, my company uses their products, my customers use their products, and they are growing like crazy because of the growth of cloud computing.

My portfolio was up 18% just for the month of January, which is the type of performance that most people would be happy with if it was over an entire year. If you keep refusing to pay for high-growth companies because you think they are "overvalued", you will never have bought Amazon, Facebook or Netflix.
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"But even in the US, our market is overvalued now, and it would make sense to have some money overseas."

It's very hard to get access to stocks from countries outside your own. I even opened up an account with Interactive a few years back for that purpose. What a pain in the neck it turned out to be! I would have to exchange for their local currency to buy a local stock. After I sold the foreign stock, I had to covert it back to USD.

So the only thing I do is just get some Emerging Markets and that's it.

DoesMIWork
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One particular country is 24% of the world GDP. That's the #1. That country has been in the #1 slot for over 100 years.
The #2 country is 15% of the world GDP. (If you believe the data from that country.)
The #3 country is 6%.

By the time you get down to the #8 country you are at 1/10th the GDP of the #1 country.

You could make a good argument that investing primarily in that one country is adequate.
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Depends on where you get your data from. It's interesting to me that the country's GDP as
compiled by the International Monetary Fund, World Bank and United Nations are all
pretty consistent estimating China's GDP as approximatly 64% of the US's. But the CIA estimates
China's GDP almost 20% larger than the US GDP.

You could make a good argument that investing primarily in the largest one country that is 24% of
the world economy is adequate only if you have faith that the other 76% of the world economies
are in sync with the US. But I'll have to acknowledge the US market has been both better and more
consistent than the .alternatives over the last 30 years.

RAM
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No. of Recommendations: 2
There are a lot of behavioral finance errors that we all make. One common one is the home country bias. People invest most of their money in their own countries markets. Even in small countries, like Thailand, you will find this. It is particularly bad in smaller countries, because they may have only one industry. For example, most of Australia’s economy is mining.


Investing in "Country Specific" ETF's (from USA) is a very difficult conquest.

Some problems are relative volume, Expense Ratio and Average Bid/Ask Ratio and not least of which is currency exchange rates. A screen to cut out some of those results in 32 of 59.

Geography Objective: ETF Country Specific


Symbol                  ETP Name                  Price     Assets   Holdings      VOL(90d)   NER    BAR     RelVol
Criteria: ALL 3o5 2o5 1o5 ALL
Criteria: Value 14.20k 0.63% 0.39%
Matches: 59 49 42 32

EWJ ISHARES MSCI JAPAN ETF $54.06 $15.7B 449 12.4M 0.47% 0.02% -17.13%
EWY ISHARES MSCI SOUTH KOREA ETF $64.04 $5.0B 125 4.2M 0.59% 0.02% -44.27%
MCHI ISHARES MSCI CHINA ETF $58.95 $4.2B 311 7.2M 0.59% 0.02% -32.52%
EWL ISHARES MSCI SWITZERLAND ETF $33.19 $857.9M 44 1.2M 0.47% 0.03% -7.80%
EWM ISHARES MSCI MALAYSIA ETF $30.55 $559.4M 59 1.2M 0.47% 0.03% 10.62%
EWT ISHARES MSCI TAIWAN ETF $33.02 $3.4B 94 6.7M 0.59% 0.03% -19.07%
EWU ISHARES MSCI UNITED KINGDOM ETF $31.60 $1.9B 110 3.0M 0.47% 0.03% -36.29%
EWW ISHARES MSCI MEXICO ETF $44.85 $1.1B 72 4.6M 0.47% 0.03% 4.19%
EWZ ISHARES MSCI BRAZIL ETF $45.40 $9.3B 56 31.1M 0.59% 0.03% -25.93%
EWC ISHARES MSCI CANADA ETF $27.13 $2.6B 126 2.9M 0.47% 0.04% 60.37%
EWG ISHARES MSCI GERMANY ETF $26.81 $2.3B 80 4.4M 0.47% 0.04% -27.06%
EWH ISHARES MSCI HONG KONG ETF $24.41 $2.7B 60 5.2M 0.48% 0.04% 10.87%
EWP ISHARES MSCI SPAIN ETF $28.36 $991.9M 26 1.0M 0.47% 0.04% 706.03%
EWQ ISHARES MSCI FRANCE ETF $28.25 $588.3M 94 917.7K 0.47% 0.04% -47.53%
EIDO ISHARES MSCI INDONESIA ETF $27.46 $693.6M 86 1.5M 0.59% 0.04% 79.28%
HEWJ ISHARES CURRENCY HEDGED MSCI JAPAN ETF $29.93 $709.9M 2 1.1M 0.48% 0.04% -65.31%
EWA ISHARES MSCI-AUSTRALIA ETF $20.56 $1.1B 83 2.6M 0.47% 0.05% -16.41%
EWD ISHARES MSCI SWEDEN ETF $29.87 $227.3M 38 428.7K 0.53% 0.05% 29.76%
EWI ISHARES MSCI ITALY ETF $25.96 $238.2M 27 958.9K 0.47% 0.05% 139.68%
EWN ISHARES MSCI NETHERLANDS ETF $28.44 $138.0M 61 244.4K 0.47% 0.05% -41.06%
EWS ISHARES MSCI SINGAPORE ETF $23.43 $530.5M 31 600.6K 0.47% 0.05% 14.57%
HEWG ISHARES CURRENCY HEDGED MSCI GERMANY ETF $25.20 $202.9M 2 226.3K 0.53% 0.05% -38.48%
ECH ISHARES MSCI CHILE ETF $46.79 $474.5M 36 433.9K 0.59% 0.07% -32.36%
TUR ISHARES MSCI TURKEY ETF $28.39 $588.0M 60 854.7K 0.59% 0.08% -13.62%
ERUS ISHARES MSCI RUSSIA ETF $34.94 $587.8M 27 333.8K 0.59% 0.08% 159.55%
EPHE ISHARES MSCI PHILIPPINES ETF $34.88 $247.6M 47 347.5K 0.59% 0.10% 25.54%
SCJ ISHARES MSCI JAPAN SMALL CAP ETF $69.18 $144.8M 967 119.9K 0.47% 0.13% -79.01%
THD ISHARES MSCI THAILAND ETF $90.88 $522.3M 120 250.3K 0.59% 0.17% 11.67%
EZA ISHARES MSCI SOUTH AFRICA ETF $56.52 $615.2M 56 823.6K 0.59% 0.20% 15.50%
EPU ISHARES MSCI PERU ETF $37.98 $155.2M 28 43.6K 0.59% 0.21% -23.29%
EWK ISHARES MSCI BELGIUM ETF $17.74 $45.4M 49 30.0K 0.47% 0.26% -76.00%
EWO ISHARES MSCI AUSTRIA ETF $20.02 $74.2M 31 80.8K 0.47% 0.31% -92.02%


GD_
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No. of Recommendations: 6
You could make a good argument that investing primarily in the largest one country that is 24% of the world economy is adequate only if you have faith that the other 76% of the world economies are in sync with the US.

Granted. However, as a general observation, it is almost always the case in any field that the big kahuna is, well, the Big Kahuna and everybody else is the tag-alongs.

There's an old saying: "When America Sneezes, the World Catches Cold"

Regardless, in making such an argument it's a whole lot different to say "I'll invest primarily in the country with 25% of the world GDP." vs. "I'll invest primarily in the country with 4% of the world GDP." To a US citizen, home country focus is a good proxy for worldwide focus.



Depends on where you get your data from. It's interesting to me that the country's GDP as compiled by the International Monetary Fund, World Bank and United Nations are all pretty consistent estimating China's GDP as approximatly 64% of the US's. But the CIA estimates China's GDP almost 20% larger than the US GDP.

Yeah, well, the CIA doesn't have such a good track record.

One thing we know about communist & dictator countries is that they lie about finances. So I don't have a lot of confidence in what China says about their economy.
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Proxy as a "Risk" factor?

Relative Intraday Volume
Relative Intraday volume is a measure of trading intensity of a security. At any point during the day, a security can trade at an average, above average or below average volume, compared to historic norms (or expected relative volume).

There are two steps to measuring relative intraday volume. First, is a measure of expected relative volume for a security. This is the 90-day trading volume of the security relative to 90-day volume of the entire market. Second, is a measure of the intraday relative volume at any point during the day. The intraday relative volume is the current volume of the security relative to the current volume of the market as a whole. If the security's current intraday volume exceeds the expected volume, the security has a high relative intraday volume and is expressed as a percent.

Relative intraday volume is calculated every 60 seconds during the trading session and is the ratio of the current relative volume to the expected relative volume.


Symbol                  ETP Name                  Price     Assets     VOL(90d)   NER    BAR        RelVol     Holdings
Criteria: 3o5 2o5 1o5 ALL ALL
Criteria: Value 14.20k 0.63% 0.39% >100%/<-50%? <30?
Matches: 59 49 42 32 7 6
Average: 0.52% 0.08% 16.6% 108
EWP ISHARES MSCI SPAIN ETF $28.36 $991.9M 1.0M 0.47% 0.04% 706% 26
ERUS ISHARES MSCI RUSSIA ETF $34.94 $587.8M 333.8K 0.59% 0.08% 160% 27
EWI ISHARES MSCI ITALY ETF $25.96 $238.2M 958.9K 0.47% 0.05% 140% 27
EIDO ISHARES MSCI INDONESIA ETF $27.46 $693.6M 1.5M 0.59% 0.04% 79% 86
EWC ISHARES MSCI CANADA ETF $27.13 $2.6B 2.9M 0.47% 0.04% 60% 126
EWD ISHARES MSCI SWEDEN ETF $29.87 $227.3M 428.7K 0.53% 0.05% 30% 38
EPHE ISHARES MSCI PHILIPPINES ETF $34.88 $247.6M 347.5K 0.59% 0.10% 26% 47
EZA ISHARES MSCI SOUTH AFRICA ETF $56.52 $615.2M 823.6K 0.59% 0.20% 16% 56
EWS ISHARES MSCI SINGAPORE ETF $23.43 $530.5M 600.6K 0.47% 0.05% 15% 31
THD ISHARES MSCI THAILAND ETF $90.88 $522.3M 250.3K 0.59% 0.17% 12% 120
EWH ISHARES MSCI HONG KONG ETF $24.41 $2.7B 5.2M 0.48% 0.04% 11% 60
EWM ISHARES MSCI MALAYSIA ETF $30.55 $559.4M 1.2M 0.47% 0.03% 11% 59
EWW ISHARES MSCI MEXICO ETF $44.85 $1.1B 4.6M 0.47% 0.03% 4% 72
EWL ISHARES MSCI SWITZERLAND ETF $33.19 $857.9M 1.2M 0.47% 0.03% -8% 44
TUR ISHARES MSCI TURKEY ETF $28.39 $588.0M 854.7K 0.59% 0.08% -14% 60
EWA ISHARES MSCI-AUSTRALIA ETF $20.56 $1.1B 2.6M 0.47% 0.05% -16% 83
EWJ ISHARES MSCI JAPAN ETF $54.06 $15.7B 12.4M 0.47% 0.02% -17% 449
EWT ISHARES MSCI TAIWAN ETF $33.02 $3.4B 6.7M 0.59% 0.03% -19% 94
EPU ISHARES MSCI PERU ETF $37.98 $155.2M 43.6K 0.59% 0.21% -23% 28
EWZ ISHARES MSCI BRAZIL ETF $45.40 $9.3B 31.1M 0.59% 0.03% -26% 56
EWG ISHARES MSCI GERMANY ETF $26.81 $2.3B 4.4M 0.47% 0.04% -27% 80
ECH ISHARES MSCI CHILE ETF $46.79 $474.5M 433.9K 0.59% 0.07% -32% 36
MCHI ISHARES MSCI CHINA ETF $58.95 $4.2B 7.2M 0.59% 0.02% -33% 311
EWU ISHARES MSCI UNITED KINGDOM ETF $31.60 $1.9B 3.0M 0.47% 0.03% -36% 110
HEWG ISHARES CURRENCY HEDGED MSCI GERMANY ETF $25.20 $202.9M 226.3K 0.53% 0.05% -38% 2
EWN ISHARES MSCI NETHERLANDS ETF $28.44 $138.0M 244.4K 0.47% 0.05% -41% 61
EWY ISHARES MSCI SOUTH KOREA ETF $64.04 $5.0B 4.2M 0.59% 0.02% -44% 125
EWQ ISHARES MSCI FRANCE ETF $28.25 $588.3M 917.7K 0.47% 0.04% -48% 94
HEWJ ISHARES CURRENCY HEDGED MSCI JAPAN ETF $29.93 $709.9M 1.1M 0.48% 0.04% -65% 2
EWK ISHARES MSCI BELGIUM ETF $17.74 $45.4M 30.0K 0.47% 0.26% -76% 49
SCJ ISHARES MSCI JAPAN SMALL CAP ETF $69.18 $144.8M 119.9K 0.47% 0.13% -79% 967
EWO ISHARES MSCI AUSTRIA ETF $20.02 $74.2M 80.8K 0.47% 0.31% -92% 31


GD_
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No. of Recommendations: 11
Depends on where you get your data from. It's interesting to me that the country's GDP as compiled by the International Monetary Fund, World Bank and United Nations are all pretty consistent estimating China's GDP as approximatly 64% of the US's. But the CIA estimates China's GDP almost 20% larger than the US GDP.

Yeah, well, the CIA doesn't have such a good track record.


It's really popular among some to denigrate the CIA these days. To set the record straight, the CIA assessed the GDP of China, and other countries, in two different ways. One is based on actual exchange rates and dollars, by which the CIA's estimate is consistent with the others at about 64% of the U.S. The other is based on purchasing power parity (PPP), which estimates the GDP based on how many goods you can buy in the country with its GDP. So for example, if China's GDP is 60% of the U.S., but a bowl of rice costs $1 in America and 50 cents in China, then you can buy 20% more bowls of rice in China with its GDP than you can buy in America with its GDP.

Elan
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