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Josh Brown: What We’re Telling Clients About European Stocks

TedTed
in Fund Discussions
FYI: Providing historical context is one of the roles we play on behalf of our clients.

And that’s a good thing, because for an investor who just began paying attention to markets in the last ten years, the extent of their context is that the S&P 500 is the only game in town worth playing, it always goes up, and dollars invested in anything else are wasted.

Looking out past this period, however, and you see that this is plainly not the truth. It’s our job to not only make sure that clients understand this, empirically, but that they’re invested in such a way so as to take advantage of the myopia of others.
Regards,
Ted
http://thereformedbroker.com/2017/05/24/what-were-telling-clients-about-european-stocks/

Comments

  • CharlesCharles
    I agree.
  • davidrmorandavidrmoran
    Around half of SP500 earnings are overseas-related, I have read.
  • davidrmorandavidrmoran
    edited May 2017
    Second, European stocks are always cheaper than domestic stocks.

    If the worry is that a US decline is overdue, they'll get even cheaper.

    (Unless you're betting against the dollar, which really is gambling.)
  • Sven
    Around half of SP500 earnings are overseas-related
    That is one of the reason why Warren Buffet recommends low cost S&P 500 index funds for most folks.
  • Desota
    Great article. Thanks for posting.
  • VintageFreakVintageFreak
    Very surprised to hear (I will not say learn because I am a COB who does not believe anything printed), people are pulling out of international and going into domestic stocks. I'm actually overweighting international in my tax-deferred accounts for a few months. Not because I have some crystal ball, but simply because my ANALysis. And not even because I simply looked at any index, but more because of funds available to me in my retirement accounts. Just chart X:Y and if line moving up buy X and line moving down buy Y. If line staying steady but either.

    One thing Josh Brown. I want to see article you published in Jan, at least Feb when you said you moved your clients assets into European stocks. Not *now* after everyone has seen the move in those stocks. Else it is what I call "using hindsight to market your genius" over the past 6 months. Seen it a long time. "How we told our clients to sell at the 2000 market top". You tell it to me few months down the road, means nothing.
  • jaba
    VintageFreak said:

    I'm actually overweighting international in my tax-deferred accounts for a few months. Not because I have some crystal ball, but simply because my ANALysis. And not even because I simply looked at any index, but more because of funds available to me in my retirement accounts. Just chart X:Y and if line moving up buy X and line moving down buy Y. If line staying steady but either.

    What funds are you using for international exposure? Thanks.

  • CrashCrash
    edited May 2017
    SFGIX. PRIDX. Down to 10% foreign equities. Letting them ride. I'm 36% in bonds of all types these days. I'm not looking to reduce that proportion which is already in bonds. Pretty happy with performance. PRIDX is almost evenly-split between Europe and Asia. SFGIX is 17% Latin America, 5% Emerging Europe, 6% Africa-Middle East and 72% Asia.
  • VintageFreakVintageFreak
    jaba said:


    What funds are you using for international exposure? Thanks.

    Like I said whatever is available in my retirement accounts. I only do such ANALysis in my tax deferred accounts. My core is Vanguard 500 Index which happens to be in all my 401ks and I add international exposure at the border based on quality of fund available to me.

    In one 401k have Europacific growth. In another I have a smattering of PASDX and MALOX. At TRP I am using some TRRLX. At Scottrade I bought more OAKGX and OAKIX. I also bought more MACSX and MAPIX.

    Not sure that helps. Basically I'm not married to any fund or manager who run traditional funds. In my taxable accounts, I just look once every quarter and decide where to send money. This I do to manage asset allocation. In my 401ks I'm not really doing asset allocation. You can say I'm doing trading. I have models I run that tell me how much to be invested in the markets. 0% - 100%

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