I started building my foreign holdings more seriously about 3-4 years ago, mainly through mutual funds, supplemented by U.S. companies with significant overseas businesses.
I believe by doing so we can enjoy a boost of our investment return by a few percentage points over a long stretch, say 10-15 years. That's my hope.
Well, you tried to activate his brain but failed.
He worries about all the bad things that could come about and can't see any of the good things that exist. It's like going to a restaurant that's crowded because of the good food and hearing his complaints about the long wait to get a table.
Thanks for the siegel article. I hadn't seen it. I wish that I could write as well as he can. His book helped me to understand that most investors are underdiversified with the foreign markets. He changed my investing attitude toward them. I hold more of them now than ever before; maybe as much as the high 30's as a percentage of my stock portion of my portfolio. I may increase that percentage sooner rather than later. He advocates, I think, in the neighborhood of 40% now.
"Take out the people who bought it on margin and you've got some serious selling."...
You are hopelessly BSing. Where is your brain?
Where did you get the numbers to support your statement above.
How do you think COH got so overpriced? Take out the people who bought it on margin and you've got some serious selling. Sure there are people who don't buy on margin, but margin impacts the markets. http://bigpicture.typepad.com/comments/2007/01/margin_debt_up_.html It's near record levels. You don't think is cause for concern for the people are utilizing it and their stocks are falling? It flowed into high flyers like COH and it will flow out just as quick.
You obviously didn't understand the part in there about momentum investors "investing" in stuff because they want on the bandwagon. I think that sums it up in COH perfectly! More of these "investors" will be dumping as their margin calls come due, furthering downward pressure on the overpriced stock.
Better use that crash helmet for OPBL. Speculative stocks have enormous risk compared to a stock like Coach if the market continues its decline.
So glad I didn't touch OPBL when many here pounced on stock at 8 +.