this post was submitted on 28 Oct 2024
558 points (97.9% liked)
Technology
59753 readers
4170 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
This is right. But you don't really need the 'total world stock'. I reduced my allocation of that to 2% because it was dragging down my returns.
The point of including worldwide stock is to reduce risk in case the US has a recession, as not all other countries will be affected by that. The aim of the Bogleheads three-fund portfolio is to be reasonably balanced in terms of risk vs reward, which is why it includes bonds too. Past performance is not indicative of future performance, and in general it's better to diversify (investing entirely in a single country isn't really diversifying)
If you're not risk-averse then 100% US stock is fine, just be prepared for larger drops than if it was more diversified.
This seems to be generally no longer true.