I’m considering allocating some % of stocks to world, not US. So keep majority in VTSAX but allocate some lesser % to something like VFWAX. I don’t know what’s a commonly recommend ratio here of US to foreign stocks. . . .
Context: I wanted to wait out some of the big panic US stocks sell-off trends of last year before I even considered putting something into foreign stocks (foreign stocks being a change from my original plans, not necessarily bad but a change nonetheless). I don’t really know if the markets have settled down in that respect, but what’s important is that I am—i.e. not emotional.
Also, the two most common competing rationales I’ve read about whether or not a US investor should invest in foreign stocks go something like this:
\-DO invest a portion in foreign stocks, because that’s just another form of diversification, which generally is prudent.
vs.
\-Why bother investing beyond US stocks? Our modern markets are already so global and interconnected; anything truly significant that effects US markets will affect foreign markets, and vice versa.
Would be interested in reading more about these matters (here, or recommended sources elsewhere). Thoughts? Suggestions?
Many thanks in advance!