Hi dear community, I will try to keep the political stuff to a minimum.
I am 36 years old, EU citizen, no debt, current portfolio is a two fund portfolio:
80% VWCE (FTSE All World Index)
20% EUNA (Bloomberg Global Aggregate Bond (EUR Hedged))
VWCE is about 63% US currently.
Our investment strategy is to basically keep this allocation until we are 50 years old where we would start moving more into bonds to about 70/30 in terms of allocation. Our yearly rebalancing threshold is 5% and rebalancing is done through investing fresh capital rather than selling. At least for the moment since we can afford it. My savings plan is 50% of my income however this is about 40% of our family income - I am married - since my wife covers the vacations and any fun spending. We have agreed that we can change our investment strategy only if the world around us changes drastically, either our own world - sickness, layoffs - or the world at large.
So given all that background, sorry if it was too boring, we think that the world at large has changed significantly since we put together our strategy. I am not going to go into politics, suffice to say that what will work for a US investor seems to be very different from what will work for an European investor. With that in mind we are considering limiting US exposure to 50% of our portfolio by investing fresh funds into either ExUS fund or STOXX 600 fund. We won’t touch our current investments, so no selling and no taxes. Do you think that we are justified in our rational? What do you think about a 3 fund portfolio built around this allocation:
70% VWCE
10% EXUS
20% EUNA (bonds)
(Goal being 50/50 US/World in the equities part)
Is that contradictory to the Bogleheads way of thinking?
Thanks!