Well, there I disagree. Aligning your portfolio with current global trends is precisely how many people flushed their savings down the drain when the dot-com bubble burst. Diversification is how you protect your investments against that sort of thing - and true diversification means spreading your investments across time, sectors, and geography. At least, that’s what you do if your goal is to make money, rather than a statement.
I’m diversified across many industries across the entire world with reduced exposure to the US. Comparing this to people losing their life savings in the dot com bubble leads me to think you don’t understand what I’m talking about.
I’m talking about reducing your exposure in a region of the world that looks certain to suffer a lag in economic growth for an extended period. Reducing your exposure in Europe during the start of the Euro Crisis in 2010 was a good idea, and I think reducing your exposure to the US for the near term is also a good idea. Keeping your investments steadfastly in one place without regard for the reality of the world around you is foolhardy. Moving your investments between mutual funds within your 401(k) or 403(b) costs you nothing
Well, there I disagree. Aligning your portfolio with current global trends is precisely how many people flushed their savings down the drain when the dot-com bubble burst. Diversification is how you protect your investments against that sort of thing - and true diversification means spreading your investments across time, sectors, and geography. At least, that’s what you do if your goal is to make money, rather than a statement.
I’m diversified across many industries across the entire world with reduced exposure to the US. Comparing this to people losing their life savings in the dot com bubble leads me to think you don’t understand what I’m talking about.
I’m talking about reducing your exposure in a region of the world that looks certain to suffer a lag in economic growth for an extended period. Reducing your exposure in Europe during the start of the Euro Crisis in 2010 was a good idea, and I think reducing your exposure to the US for the near term is also a good idea. Keeping your investments steadfastly in one place without regard for the reality of the world around you is foolhardy. Moving your investments between mutual funds within your 401(k) or 403(b) costs you nothing