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Thread: Why invest internationally?

  1. #61
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    Yes 50 percent Xic (TSX) and 50 percent vfv (S and p ) leave for thirty years you will be fine. Lowest mer . No need for international or bonds m


  2. #62
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    Quote Originally Posted by humble_pie View Post
    jas4 aren't you in a cycle right now where you're not supposed to talk like that?

    remember that, in this cycle, you are believing that ETFs are holding all of their sweet little individual stocks in outright ownership, just like their simulation lists suggest ....
    I still like ETFs, but I'm selective with them.

    I like XIU because it has the longest track record (first ETF in the world), minimal securities lending, and 18 years worth of audited financial statements ... all of which I've looked at that convince me it doesn't play derivative games.

  3. #63
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    Quote Originally Posted by Argonaut View Post
    I think Bonds will enter a bear market, and Gold is in a bear market that started in 2012 and may not let up for another 10 years.
    Can't be much of a bear market considering that gold (valued in CAD) is actually positive since the start of 2012. Here's the chart of gold since 2012.

    Even if you shift the start date to the peak price, we're still only 7% below that peak as shown in this chart. I agree we might be in a bear market for gold, but not a particularly severe one by the CAD reference point.

    As gold is a currency, it must be looked at in context of your base currency, not USD.

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  5. #64
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    Quote Originally Posted by Shaun80 View Post
    Yes 50 percent Xic (TSX) and 50 percent vfv (S and p ) leave for thirty years you will be fine.
    If you really can leave it alone for 30 years, yes you will be fine. I would make the argument that few people can actually leave the bulk of their capital alone for thirty years. Maybe those with ultra-steady jobs and benefits. As time goes on, I'm seeing the appeal of government and academic jobs. Even if they pay less than corporate, the stability is worth so much!

    Many people will have to dig into their savings at some point. It could be job loss, recession, divorce, home purchase, health issues, needs of the family, one partner stops working, etc. Going 100% stocks assumes that you won't encounter one of these situations.

  6. #65
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    I think a two-fund portfolio like that could work out rather well for many investors....left for 30 years...

    1. XIC + VFV
    2. XIU + VTI

    Since I've largely unbundled my Canadian ETF (own 20-30 XIU stocks directly focusing on telcos, utilities, pipelines and financials) I figure that + lots of VYM inside RRSP might eventually be all I need. And a cash wedge of course, I figure we need $50k at time of retirement.

    Like mordko and others have written government pensions and my small workplace pension will be my fixed income.

    John Bogle on international investing:
    http://www.morningstar.com/cover/vid...aspx?id=718644
    Last edited by My Own Advisor; 2017-03-25 at 08:00 AM.
    Hidden Content - Working on a $1 million portfolio and $30k per year from it.

  7. #66
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    Quote Originally Posted by Shaun80 View Post
    Yes 50 percent Xic (TSX) and 50 percent vfv (S and p ) leave for thirty years you will be fine. Lowest mer . No need for international or bonds m
    Do fine ... maybe ... not sure I'd skip international exposure.

    The small LIRA that I bought then forgot for sixteen years plus is showing +48% for the Canada/US exposure while the international exposure is +278%.

    Current market and political issues will affect the going forward possibilities but I'm not sure I'd want to ignore it completely.


    Cheers

  8. #67
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    only in Canada, eh?

    Pity!

    I took a random sampling from 65 country specific iShares ETFs.
    There's always a bull market somewhere - also a bear somewhere.
    Who wants to do all that work? Not I, said I.
    I just went with MAW130 - Mawer Global Balanced Fund (mer 1.15%)

    These are neither the best nor the worst 5-year returns from the list.


    http://stockcharts.com/freecharts/pe...q,ewg,ewc,erus

    Code:
                    Fee %
    TUR    Turkey   0.64
    EWO    Austria  0.48
    EWY    S. Korea 0.64
    EDEN   Denmark  0.53
    INDY   India 50 0.94
    MCHI   China    0.64
    EWQ    France   0.48
    EWG    Germany  0.48
    EWC    CANADA   0.48
    ERUS   Russia   0.64
    No real point to this post except for entertainment.

  9. #68
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    It can also be fun to look at the Credit Suisse Global Investment Returns Yearbook
    http://publications.credit-suisse.co...rbook-2017-en/

    It profiles different countries and their historical returns. Countries do not all have similar returns through history... there are some that are notably better performers than others. For example many European countries have awful performance histories. We're not just talking about the last few years, but over a century+. Some profiles of a few of the top performers

    Whether it is down to economic management, a resource advantage or a generous spirit, Australia has in real terms been the second-best performing equity market over the past 117 years. Since 1900, the Australian stock market has achieved an annualized real return of 6.8% per year.
    Canadian equities have performed well over the long run, with a real return of 5.7% per year. The real return on bonds has been 2.2% per year. These figures are close to those we report for the USA.
    Over the years since 1900, the South African equity market has been one of the world’s most successful, generating a real equity return of 7.2% per year, which is the highest return among the Yearbook countries.
    Over the long haul, Swedish equity returns were supported by a policy of neutrality through two world wars, the benefits of resource wealth, and the development of industrial holding companies in the 1980s. Overall, equities returned 5.9% per year in real terms.
    Since 1900, equities and government bonds in the USA have given annualized real returns of 6.4% and 2.0%, respectively.
    Those appear to be some of the best performers,

    South Africa 7.2% real
    Australia 6.8% real
    USA 6.4% real
    Sweden 5.9% real
    Canada 5.7% real

    Notably, Canadian real returns are not very far behind the US's.

    Last edited by james4beach; 2017-06-19 at 12:42 AM.

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