# Canadian or US equities?



## Time4earlyretirement (Feb 21, 2014)

Looking to buy a couple grand of index funds right now, taking in opinions.


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## andrewf (Mar 1, 2010)

Neither! International stocks are cheaper, generally speaking, from a CAPE perspective. Both VEA and EEM have CAPE values of about 15-16. Canada is just over 19 and the US is over 25.


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## gibor365 (Apr 1, 2011)

andrewf said:


> Neither! International stocks are cheaper, generally speaking, from a CAPE perspective. Both VEA and EEM have CAPE values of about 15-16. Canada is just over 19 and the US is over 25.


6 months ago CAPEs weren't uch different and indexes had anice run... now what?! should he sit on cash and wait for correction?! 
but that's true that VEA or DEM are cheaper


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## richard (Jun 20, 2013)

What's your current allocation?


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## andrewf (Mar 1, 2010)

Did I suggest holding cash? CAPE does not mean much in the short term. Expensive markets can get more expensive, cheap ones can get cheaper.


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## gibor365 (Apr 1, 2011)

This what I understood from your post


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## andrewf (Mar 1, 2010)

I was suggesting putting new money to work in international stocks.


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## Killer Z (Oct 25, 2013)

This thread should be moved into the Investing forum.


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## gibor365 (Apr 1, 2011)

andrewf said:


> I was suggesting putting new money to work in international stocks.


Agree with it....but is anyone just starting investments , it's kinda wierd to put money only into Europe/emerging market


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## Time4earlyretirement (Feb 21, 2014)

BUMP.

My portfolio right now is about 40k in roughly 10 stocks of no particular attention to asset allocation.

The money which I want to now put into index funds is my newly started RRSP, which I have decided will be in a passive strategy. I have about 6k in cash, but its been hard to decide where the put money as things are reaching new highs.

I'm thinking maybe 50 tsx, 30 SP500, 20 EAFE. What do you guys think?


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## Butters (Apr 20, 2012)

Do you have other accounts, Margin/Non-Reg, TFSA? Canadian would be better here

RRSP is great for US/International

Look at your portfolio as a whole, not just each account separately

You can buy International now, maybe a bit of US


Do you have free ETF's? a 10$ fee is equivalent to a 1% loss in a 1000$ trade


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