Counter-balancing international stocks

[carol-ann]

Hi, I have the entirety of my portfolio in developed and emerging stock ETFs (e.g., EFA/VEU, EEM/VWO). At the time I was thinking I am safe from a U.S. crisis but turns out I'm not at all.

I would like to add some other uncorrelated ETFs to it, but cannot find such.

Even things that should not be correlated seem to be (e.g., international real estate funds like WPS).

Bond ETFs seem to be even all the time. If the stocks crash 2% then the bonds gain 0.4% that day; doesn't help me much unless I want to put 90% in bonds which seems very conservative.

What am I missing?

[TheCutter]

Leverage?

[carol-ann]

Sorry, I don't follow. I'm not levelling here, I'm serious. I keep imagining a global correction incited by the sub-prime crisis and I'm out 20% in a few months. That would not be good.

Or do you mean to buy bond ETF options or some inherently leveraged bond ETFs?

[CrushinFelt]

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I keep imagining a global correction incited by the sub-prime crisis and I'm out 20% in a few months. That would not be good.

[/ QUOTE ]

[ QUOTE ]
unless I want to put 90% in bonds which seems very conservative.


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Global correction of 20% sure seems like it should lead to being more conservative.

If not, just follow john kane's thread, he's doing waht you want to do but way cooler.

[carol-ann]

I read john kane's thread, but his portfolio seems very complex and seemingly random to me.

[CrushinFelt]

it isn't

[carol-ann]

Are we both speaking about this john kane thread? It seems very leveraged and very active.

What I'm trying to do is passive investing. Also I don't have an options/futures account.

Sorry if I'm not being very good at this, but one day I realized I have my money sitting in a checking account bringing no interest and then I bought the international stock market ETFs and now I'm worried about them all crashing together with the U.S. economy.