With the dollar so strong should an average investor look to diversify into emerging markets or currencies?
I currently hold 10% of my 401(k) in international stock.
Great question. First, I would say it depends on your Risk Tolerance and Time Horizon. If you are able to handle bigger fluctuations in your account and have some time for the investments to work through the fluctuations, then devoting more of your account to international equities might be right. Consider though that international equities can be classified into two types; developed markets and emerging markets. If you were someone that had a moderate risk tolerance with at least 6-10 years of investing left a good range for portfolio weighting would be 15-35% in international equities with emerging markets representing 0-5% of that. | 02.02.16 @ 20:57