03-17-2015, 06:51 AM
(This post was last modified: 03-17-2015, 06:52 AM by hendi_alex.)
An all or nothing approach bothers me, no matter what the theme. I think that a portfolio should have a minimum of five 20% allocation groupings to approach reasonable diversification and probably a minimum of ten 10% groupings is much better. The groupings should include things such as region, market cap, sector, etc. IMO the U.S. markets are worth an overweight, but with lots of ex. U.S. exposure as well as inclusion of multinational corporations which also provide some regional diversity. My allocations are a bit sloppy right now, but still include lots of European and emerging market exposure via CCJ, DEM, DLS, HIMAX, IDV, KMF, OIH, POT, VGK. I would consider a diversified basket up to 20% in Canadian stocks, either via individual tickers or via fund selection. I'm on the low end of Canadian exposure for now because of currency risk, and because I think that they have a banking crisis to face as well as a housing bubble that is ready to pop.
Alex