Percent of Portfolio in United States Equities?

**Scanner** · 02-15-2008, 04:19 PM

I am mostly with you.

However, our taxation rate is not as high as most of Europe or Canada.

I have 33% of my portfolio in domestic right now and will probably leave it there.

I consider domestic a "hedge" now. . .rather than a "core" holding.

**buzz** · 02-15-2008, 04:20 PM

Could you give some references to back up your claims, please?

**Scanner** · 02-15-2008, 04:24 PM

yeah, LOL. . .obviously he loaded up on as much controversey in one paragraph as he could.

The reason we have high liabilties isn't solely due to entitlements - fighting wars abroad is probably the biggest line item expense. Still. . .a liability is a liability. I don't disagree w/ this high school senior we have had bad fiscal policy the last 8 years.

**maat55** · 02-15-2008, 05:08 PM

The war is a financial mess, but I agree that intitlements are going to break us. Bush has done well to protect the country and keep the wheels rolling on the economy, but he has also done nothing to slow government spending. Since Katrina, the economy has slowly went downhill. Who know's what should have been done about it.

**jc3900** · 02-15-2008, 05:48 PM

Yes the war has cost a lot and was a big mistake, but the entitlements kill the cost of war any day. If you don't believe that we have 53 trillion dollars in future liabilities, go google Comptroller David Walker. It doesn't matter if it is republicans or Democrats. They all spend money and screw the tax payers. I mean China's taxes are 20% of gdp while the United States is like 28%+. Who are the real communist? Anyway, what do you guys think of allocating only a third or less of my portfolio in United States equities?

**sweeps** · 02-15-2008, 05:58 PM

If you believe our country is going bankrupt, why put any money in domestic equities? Put all your money in China.

**JBinKC** · 02-15-2008, 06:20 PM

Its roughly around 15% and a big portion of it is in agriculture.

**tripods68** · 02-15-2008, 08:05 PM

Originally posted by sweeps View Post

If you believe our country is going bankrupt, why put any money in domestic equities? Put all your money in China.

I agree totally.

jc3900 - Your comments just irritates me. Last time I read the US Constitution no where it mention, "communist" anywhere. And to suggest China's taxes is lower compared to US GDPs makes the US a "real" communist. Unlike the US, China Human rights violations in the People's Republic of China (PRC) remain systematic and widespread. The Chinese government continues to suppress dissenting opinions and maintains political control over the legal system, resulting in an arbitrary and sometimes abusive judicial regime. The lack of accountability of the government and the Chinese Communist Party (CCP) means that abuses by officials often go unchecked.

Let me tell you how PRC control expression and association that we so enjoy in the US over 200 years. The total number of persons in China detained without charge, sentenced administratively to reeducation or reform camps, or held by other means, solely for peacefully exercising these rights is unknown. However, that figure is estimated to be far in excess of the approximately 3,000 individuals that the PRC currently acknowledges imprisoning for "counter-revolutionary" or political crimes. Many of those detained are held under circumstances that constitute clear violations of due process. Such violations include lengthy detention without charge or trial and depriving defendants of access to legal counsel. So I guess living in the US makes as a "real" communist.

How about US compared to the rest of the world. This came from 2004 figures.
The chart below provides some perspective on how the U.S. is doing relative to our industrial competitors:

GDP
Growth (1) Unemployment
Rate (2) Inflation Rate
(3)
U.S. 4.30% 5.60% 1.90%
Australia 2.60% 5.70% 2.40%
Britain 2.80% 4.90% 1.40%
Canada 1.00% 7.40% 1.20%
China 9.10% 4.70% 3.20%
France 0.50% 9.40% 2.00%
Germany 0.20% 10.20% 0.90%
Italy 0.10% 8.40% 2.20%
Japan 3.60% 4.90% -0.40%
Sweden 2.00% 5.90% 0.80%
Switzerland -0.60% 4.30% 0.20%
1. Data is from 4th Q 2003
2. Data is from December 03 or January 04. Unofficially, China rate could be as high as 12%.
3. Data is CPI from January 04

Rank
Country
GDP - per capita
Date of Information
1 Luxembourg $ 55,100 2003 est.
2 United States $ 37,800 2003 est.
3 Norway $ 37,700 2003 est.
4 Bermuda $ 36,000 2003 est.
5 Cayman Islands $ 35,000 2002 est.
6 San Marino $ 34,600 2001 est.
7 Switzerland $ 32,800 2003 est.
8 Denmark $ 31,200 2003 est.
9 Iceland $ 30,900 2003 est.
10 Austria $ 30,000 2003 est.

China Ranks 122 $ 5,000 2003 est.

Let's talk fact please

**jIM_Ohio** · 02-15-2008, 10:01 PM

73% domestic equities
25% foreign equities
2% bonds

the weak dollar is killing the US right now, but I will expect that to be the first thing changed once the new president is elected.

I have a theory a weak dollar was needed to fight terrorism (because many terrorists counterfeit US money, and also use US money to fund operations). So an Iraq withdraw would lessen need for a weak dollar, and things will pick up again.

If a person does not have confidence in the US financial system, the best investment is commodities- guns and ammo in particular. The more you have on hand, the better (meaning protect yourself from anarchy).

**meaghanchan** · 02-16-2008, 04:17 AM

I'm roughly
45% US
45% foreign
10% bonds

I tend to try to approximate the global market cap and not try to predict the future. This is the mix I'm staying with for at least the next 10 years- excepting the fact that I will probably be adding some REITs once my portfolio gets big enough to make it worth it.

**jc3900** · 02-16-2008, 11:07 AM

I don't know exactly when the United States will crash, but I can say that the 20+ year outlook is very very bad. If you look at government spending data over the last 100 years, you will see that on average government expenditures grow around 8% annually. That figure coupled with millions of baby boomers seeking the entitlements that the paid into all their lives, does not make me look very favorably on the U.S. The other thing that I think is worth mentioning is that ALL EMPIRES END. Whether it is financial, military, or both. The financial dominance that we have attained could quickly fade away. Also, investing is all about diversity. So, why is it that some people would suggest to me to invest over 40% in one country. I think that is in essence holding a lot of eggs in one basket. Yes, geopolitical safety is very reliable then it is in other places. But, If the United States wants to choose Socialism as the best form of government, then I think I will have to under weight the US in terms of investment.

Wow, I completely failed to mention the crazy credit situation of the United States. According to one site I checked, the savings rate in the United States in 2004 was near 1%! There was a good amount of time where the United States saved 11% but since the 1980's that has been declining and hit a low of 1% in 2004. That is probably at least 6%+ lower than much of Europe and the developed world. The united states is a credit driven society and in all likely hood credit bubbles are made to pop.

**Scanner** · 02-16-2008, 11:26 AM

But, If the United States wants to choose Socialism as the best form of government, then I think I will have to under weight the US in terms of investment.

And put it in China and Europe. LOL.

I hedge with America becuase if it's one thing the US is known for, it is for ingenuity.

Most of the world awaits for America to lead, whether it's military, economic or political. No one yet has stood out and said, "This is the way." Even China is forever content to play the Neutral Nation.

I certainly do beleive a "shift" is underway in America. . .away from consumerism and yes, maybe a little onto conscious capitalism.

We won't just plunder resources anymore and destroy our environment to make a buck. The days of ENRON and Michael Douglas' character "Greed is good" are gone. (and good riddance to them)

I guess it is a little more socialistic. . .that's one way of looking at it . .but I'd like to think it's going to be a little more responsible instead.

Try to go out beyond your Young Republican Club meetings a bit.

I"m kind of with you. . .however, I think you may be 10 years too late. The international markets had some really great bull runs the last 10 years. Like JimOhio notes, the next President will hike taxes to balance the budget (Repub. or Dem). This will strengthen the dollar.

Not to mention many American co.'s are multi-national in presence anyway.

I think it all hinges on energy myself - oil and alternative energy.

All periods of economic expansion in the last 50 years were directly in sync with cheap oil. When oil's cheap. . .the economy expands. . .when it's not. . .it contracts.

**Scanner** · 02-16-2008, 11:29 AM

BTW, I"m giving you some crap. . .but your opinion/stance is welcome here. If we were all the same, it wouldn't be any fun.

You are usurping my position as forum contrarian and that's why I am giving you some crap

Good show.

**jc3900** · 02-16-2008, 11:55 AM

Scanner, I think republicans and democrats are both the same and are terrible for our country and economy. Anyway, maybe I am being so negative because of the absolute pathetic policies and people in government. The thing that makes me so mad is that the United States could be 10 times the country right now if anyone with a brain was making the decisions. Can you imagine what would happen to this economy if the government shared the ideas of savingadvice. It would be unreal. Taxes would be cut along with spending and a bull run would commence that has never been seen on this earth.

Percent of Portfolio in United States Equities?