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Re:Reddit's Stock Threads Become a Must-Read on Wall Street by tasuki on Sunday October 11, 2020 @11:18AM (#24746356)
What do people mean when they say "index funds"? There are so many... which ones are you taking into account?

Before you point to S&P 500: I'm from/in Europe, please account for that in your reasoning :)

Re:Reddit's Stock Threads Become a Must-Read on Wall Street by unreal37 on Sunday October 11, 2020 @11:31AM (#24746445)
There's no law that says you have to invest in Europe, right?

The US stock market outperforms any European or Canadian stock market in the past 10 years, and there's no reason that won't continue. This is because the US is where tech stocks are listed.

So, invest in the US even if you live outside the US. YMMV.

Re:Reddit's Stock Threads Become a Must-Read on Wall Street by sxyuan on Sunday October 11, 2020 @12:23PM (#24746867)
Investing outside your region leads to currency risk. Currency hedged funds tend to incur slightly higher costs. I don't know if there are additional tax implications as well.

Not only is historical performance no guarantee of future performance, 10 years is a pretty short time span to look back - it doesn't even take you back to the '08 recession. The US did well in the 1990s and 2010s, but both ex-US developed markets and emerging markets did better in the 2000s: https://www.ishares.com/us/strategies/international-etfs

It's good to diversify internationally, and that probably does mean holding some US equities ETF even if you're in Europe. As for what else to buy, this may be a good starting point: https://www.lynalden.com/best-etfs/

Re:Reddit's Stock Threads Become a Must-Read on Wall Street by marketgod on Sunday October 11, 2020 @09:16PM (#24750570)
You can hedge your currency risk but the U.S. dollar is the world currency. For example in Canada in 96 when you were making USD it was killing you until about 2003 but if you didn't dip into it that money doubled on its own as the USD is much stronger today.
Re:Reddit's Stock Threads Become a Must-Read on Wall Street by tasuki on Monday October 12, 2020 @02:39AM (#24751980)
Yes, the USD is currently the foremost reserve currency. See eg https://marketcap.com.au/wp-content/uploads/2018/11/WRCurren...
Re:Reddit's Stock Threads Become a Must-Read on Wall Street by atombender on Sunday October 11, 2020 @01:18PM (#24747374)
International markets outperform the US about half the time: https://www.fidelity.com/viewpoints/investing-ideas/internat...
Re:Reddit's Stock Threads Become a Must-Read on Wall Street by tasuki on Sunday October 11, 2020 @05:11PM (#24749135)
Yes, for the past 10 years this was a wonderful piece of advice. What leads you to believe it's just as wonderful for the upcoming 10 years? How long are tech stocks going to outperform the market?
Re:Reddit's Stock Threads Become a Must-Read on Wall Street by colinmhayes on Sunday October 11, 2020 @07:42PM (#24750085)
Until the end of time. Tech is the future.
Re:Reddit's Stock Threads Become a Must-Read on Wall Street by sobani on Monday October 12, 2020 @06:07AM (#24752943)
https://www.justetf.com/en/find-etf.html?assetClass=class-eq...

Here is a link to ETFs available in Europe that have a worldwide focus. If you have no clue or preference, go for the top one. It's large, cheap and doesn't try to do anything fancy.

Keep in mind that even world wide indexes have a large portion in the US, since the US market is so large. On the flip side, there are many companies in the US that are internationally diversified themselves. Coca Cola sells its sugar all over the world, not just in the US.

Just ETF is focused on showing only ETFs that are available in Europe (not all ETFs abide by EU regulation).

Re:Reddit's Stock Threads Become a Must-Read on Wall Street by tasuki on Monday October 12, 2020 @08:55AM (#24753892)
Two thirds of iShares Core MSCI World is in US stocks [0]. That seems to me like a rather large proportion. But good point that many of those companies are international!

[0] https://www.ishares.com/uk/individual/en/products/251882/ish... (search for "Exposure Breakdowns", then choose "Geography")