cancel
Showing results for 
Search instead for 
Did you mean: 
     
Participant ○○○

I'm FAR too US-centric

I feel like US president Trump. Who knew that non-US INCOME investors usually shun the USA?

https://www.morningstar.co.uk/uk/news/200206/dont-overlook-us-stocks-for-income.aspx

What do you guys think?

0 Kudos
4 Replies
Highlighted
Participant ○○○

Re: I'm FAR too US-centric

What is the proportion of US dividend stocks held by non-US persons?

I know that all countries' investors have a home bias, but how much of Canadian, UK, and Japanese investors' holdings (or of mutual funds based in those countries) are US stocks.  Any idea?

 

0 Kudos
Highlighted
Contributor ○

Re: I'm FAR too US-centric

One possible problem, I imagine, going for yield outside US could USD getting stronger or other currency becoming weaker. And thus effective yield being less. Of course if it happens other way then it benefits. But seems in past whenever crises happens everyone runs for US and USD becomes stronger.

I am rather clueless on these things so please correct me if I am wrong.

0 Kudos
Highlighted
Frequent Contributor

Re: I'm FAR too US-centric


@waffle wrote:

One possible problem, I imagine, going for yield outside US could USD getting stronger or other currency becoming weaker. And thus effective yield being less. Of course if it happens other way then it benefits. But seems in past whenever crises happens everyone runs for US and USD becomes stronger.

I am rather clueless on these things so please correct me if I am wrong.


I prefer unhedged funds for the currency diversification (although I have always had grave doubts about the euro).

Moreover, hedging currencies adds to costs. Funds that have historically hedged foreign currency exposure, like OAKIX, FMIJX and LLINX, haven’t exactly distinguished themselves.

0 Kudos
Highlighted
Participant ○○○

Re: I'm FAR too US-centric

I learned about the existance of "income investing" from Americans. As a lifelong TR investor it didn't apply to me. I concluded that it was an American idea.

Recently I learned that income investing is really a UK thing. That CEFs are a big deal there. Started there.

Now I learn that non-US income investors usually shun USD assets.

This is all new to me. I need to start reading more articles on Morningstar's UK site. The POV is sometimes quite enlightening.

 

0 Kudos
Announcements