International Fund? I live in the United States, and most of my money has been in international funds, as they have done really well in recent years. These funds invest primarily overseas, in growing economies such as Europe, Africa, Russia ..
Is it a possible threat recesssion in 2008, I wonder if it is wise to remain in these funds, so they invest outside the United States. Or if these funds have an equal chance of crashing or greater. I understand nobody can really predict, but all answers unprofessional and information are appreciated.
These funds will inevitably be affected by a U.S. recession. Many of these funds when they invest abroad, are internal U.S. stocks. These stocks are at their activity outside the reach of United States if. So, I bet Caterpillar is in your fund. Caterpillar is obviously in high demand as there are many emerging markets that are needed to build an infrastructure for growth ... mean increases in construction.
Does that mean a U.S. recession will be Caterpillar. No. And if so, you have about 500 other stocks that will do their part to keep the fund afloat.
In addition, the situation of the United States is also facing the European Union and the United Kingdom. He has already had an impact in China and Canada. With all this happening, there is a small chance of a global recession. Maybe not all at once (which means it can grow in small pockets), but its something to consider as well. People will throw the word "diversify" to you in an attempt to sound intelligent ... do not listen. Investing in diversified funds means that you are. Diversifying your search is more specific, you want to limit your exposure to possible effects of a U.S. recession. To do this, you seem to do well with the International Fund ...
But my next, very important, the question is: What are the international funds are you investing in?
There is only one answer;
"Asset Allocation".
You can choose to overweight sometimes (a little).
"Asset allocation" because "nobody can really predict."
Always diversify - to determine an appropriate division between national and international fixed income funds, and then stick to it.
Posted on February 2, 2010.