You betcha. US and European equities are highly correlated. Recent underperformance of European equities does not indicate overperformance in upcoming bad times.
and what about the emerging markets? Aren't they already allocated to a different risk optic? Or China too? I think what triggers the correction is more decisive. Recession or the opposite, a credit emergency due to higher interest rates? I'll have to dig out a correlation matrix ;-)
Agreed, although business cycle differs from politics in the given country. While UK is still shunned at times, we must show France, Germany et al that we share much heritage, and hope isolationism does not increase: be good friends & allies.
You betcha. US and European equities are highly correlated. Recent underperformance of European equities does not indicate overperformance in upcoming bad times.
Good points made. What do you suggest instead, as a hedge? Gold? Chinese equities?
Honestly, the only hedge I can think of are German and Swiss government bonds...
This time is never different.
I shall not suffer any loss at all. I shall not sell.
Yes, as the saying goes: A long term investment is a short-term investment gone wrong…
and what about the emerging markets? Aren't they already allocated to a different risk optic? Or China too? I think what triggers the correction is more decisive. Recession or the opposite, a credit emergency due to higher interest rates? I'll have to dig out a correlation matrix ;-)
Agreed, although business cycle differs from politics in the given country. While UK is still shunned at times, we must show France, Germany et al that we share much heritage, and hope isolationism does not increase: be good friends & allies.