Rotation away from US

[Sophomore]

Is anybody reallocating based on this?

My core holding is a global developed markets tracker, so 70% ish US and lots of big tech. I also hold Temple Bar and Fidelity Special Situations. I don’t tend to hold EM because my other half likes to hold lots of EM (and tech).

Thinking that I’d like to move part of my global tracker into eg Dodge & Cox Worldwide for a bit more diversification. But am I just tinkering?

I sold all our S&P 500 trackers a couple of days before DJT was sworn in last January, and haven't regretted it. We've still got a fairly large holding in a global tracker which hasn't really gone anywhere in months, but apart from that our only real exposure to US equities is through holdings in F&C Investment Trust and Scottish Mortgage, both of which are actively managed, and through a couple of other ETFs (one for income, one for value shares) which have some US stocks but nothing techy.

To diversify we've got holdings in various other regional funds which have all done fairly well except for India which has been an out and out disaster.

India has indeed been a bumpy ride. I have put a freeze on Global/S&P - not selling though, just buying other indexes for a while.

It is very difficult to know without understanding your approach to risk and time horizon, but a few comments anyway:

The managed funds you seem to be holding will always have higher fees than low cost trackers, and evidence strongly suggests that managed funds tend to underperform the market over the long run, partly because of the fee costs.

Most global equity trackers will be 60 or even more than 70% US weighted just because of the value of the US markets. US markets have outperformed RoW since the financial crisis, but this hasn't always been the case, so diversifying away is not a bad idea.

The best way to do this is through a range of tracker funds. The way we do it is one for the whole world (such as VWRP) then other regional tracker funds to reduce the US weighting of the global tracker. These will need to be re-balanced (we do it annually).

Depending on risk appetite and time horizon, then diversify away from equities with bonds, a gold ETF, REITs, and so on.

Thanks @InveterateWineDrinker @NextLevel2

Sorry, @jaundicedoutlook - I should have been clearer. I’m not looking for general investment advice, just interested in people’s takes on the much-discussed rotation away from US, and what (if anything) people are doing in that regard.

You're welcome, but I wouldn't follow my investment activity too closely. I have shares in Relx, LSEG, Sage Group and Experian.

This week has been... interesting.

I guess it depends on why you are moving away from the US. Ethical reasons, or you think US stocks will crash will be different answers I suppose.

I have kept my S&P investments. Doing a little bit of rebalancing but I'm certainly not selling mine.

It worth thinking about. On a whim Trump could levy extra charges on US liquidations and withdrawals. I recall reading a warning about this month's ago.

I’m not sure why you would do this tbh unless you thought AI was going to go through a bust cycle.

I diversified my US holdings by buying China stocks (a market I’m quite familiar with) and have had a rough couple of years with that one.

Trump loves to talk up the market, while Xi wants to choke it if he thinks oligarchs are getting too big for their britches. Painful …..

I had a small amount in Vanguard S&P 500 which I recently sold as the P/E ratio is so high right now. Still have some investments in the US, but at times like this I prefer to pick and choose my own stocks. The market is really disjointed right now, with some stocks showing crazy high valuations, while others are irrationally oversold.