Re: Almost every International Index Fund is near its 52 wk high.
[ QUOTE ]
Is this unusual? Shouldnt these markets work against eachother? If not, why not just put 100% of your money into International Markets?
[/ QUOTE ]
What's the U.S. dollar doing? Because of currency translation, Intl. funds also go up when the dollar gets cheaper, and down when the dollar appreciates. It's argued that as long as we run big budget deficits the dollar will decline in value. When Clinton balanced the budget, the dollar got stronger. Since there seems to be no end to the budget deficits right now, it's expected the dollar will continue to decline over time.
That's one reason why if you have a passive portfolio (i.e. index funds) you should consider putting 25-35% in an international index fund.
|