Hi there, I have some thoughts about long term investing and I would like to get challenged or get some thoughts.
I have currently allocation in stocks
- 97% VT
- 3% CSSMI (Swiss index)
I originally wanted to go with a 90-10 allocation for a home bias, but after seeing CSSMI is mostly Nestle, I switched to only VT and let it be.
Currently VT is composed by:
- 60% US
- 17% APAC ( 3% china)
- 15% Europe
However, if I compare GDP (List of countries by GDP (nominal) - Wikipedia)
- US 30%
- China 20%
- Germany 5%
I believe the other regions are underrepresented because basically part of the economy is not publicly listed, or are government own (+GDP also counts foreign investments). Still, I have the feeling (and I can be challanged on this) that US is heavily over-represented over some other economies due the nature of liberal capitalism vs state protected markets like India and China.
Does it make sense to slightly correct the allocation to other markets?
Os is just not possible because, by nature, the Chinese economy is not public?
Does any of you consider that in their portfolio allocation?