Q: I’ve been reading a lot about the decline of the American empire. If on the horizon how does one prepare for this?
Going forward what would you recommend for a Canada, US, International investment ratio in a portfolio?
Thanks
Going forward what would you recommend for a Canada, US, International investment ratio in a portfolio?
Thanks
5i Research Answer:
We think these concerns are probably a bit ahead of themselves. There certainly are some shifts going on but empires are not built or destroyed in two months, so a lot can still happen and we don't think allocations need to change a whole lot at this point.
If the Eurozone does decide to start investing more in growth, a case could be made for increasing allocations to Europe but again, a lot needs to happen to bring the words/ideas coming out of Europe to action or reality and these things don't turn on a dime for better or worse.
For now, we would still favour the US, with a general suggested 50%, 30%, 20% (US, Can, Int'l). International could be 10% to 20% depending on the investor.