simoan wrote:Oggy wrote:Yes - largely agree with previous 3 posts. I too limit UK to about 4% as per my global funds and I don't see the UK economy going anywhere anyways. My concern is that I am about 80% in the US. No bad thing for growth, not great for diversity/risk perhaps. Hence I am looking around for a global fund with less US bias than the usual 60/70 odd percent or else a global fund ex US which has decent growth. Tricky.....
The trouble is, investing in UK companies is not the same as investing in the UK economy. There seems to be a lot of recency bias going on in the PI world and I have read comments elsewhere of people talking about dumping their UK holdings and investing everything in the US. Nothing screams over extended bull run more to me and they are simply momentum investing. Now, I have a lot of time for momentum investing (don't sell your winners etc.) but it makes no sense to me in buying with total disregard to valuation. I agree that everyone should have significant exposure to the best US stocks but I cannot bring myself to buy the whole market. No doubt, the S&P 500 has some world leading companies across a number of sectors, but it still leaves you with ~30% exposure to financials, consumer discretionary, energy and material sectors that I do not want any exposure to. The situation is even worse if you go the equal weighted S&P500 root.
Understood. So where/what does one invest in if you like trackers - as i do?