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I was reading articles at
http://www.efficientmarket.ca/ which suggested allocating index funds based on market capitalization. So US would only be allocated 40% instead of 70% in your plan. What is your reasoning for investing so heavily in the US? Would you recommend differently for a Canadian investor?
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It is more diversified to have a country weighting similar to the size of the country. So, US investors should maybe only have about 40% of the stock portion in the US and the rest international.
However, there is a kind of "tracking" error associated with diversifying so much out of your home country. Most of the news, and most of your friends will have most of their investments in their home country. If your country is having an outstanding year, and your globally diversified portfolio isn't doing as well, investors without extreme discipline may be tempted to tinker with their allocations. Tinkering at that time is probably a mistake. It is better to pick an allocation and stick with it year in and year out. I think 70% to US for US investors is just fine. In general, I think most investors overweight their home country to some extent.
I think Canada's stock market is only 2-3% of the world in market cap. 40% to US is just fine for a Canadian investor. Besides being right next to us geographically, there's no reason to overweight the US. (What % allocation do they recommend to Canadian stocks?)
-Tom