Does buying US stock funds mean I MUST also buy US treasuries?
Posted: Sat Mar 16, 2013 2:49 pm
I don't live in the US but I wish to diversify my stock portion (25%), so that 15% will be held in local stock etf (denominated in local currency) and the other 10% held as shares of VTI (denominated in USD).
Gold will be held in a US based gold fund (denominated in USD).
LT Bonds and cash are to be held in my local currency.
There's been a claim that this approach creates an unhealthy tilt to my portfolio which will require me to buy foreign (=US) LT bonds and t-bills to symmetrically "mirror" my diversification to the other asset classes.
However, from the book I understand that buying foreign bonds and t-bills is NOT recommended.
Can someone please help me settle this contradiction?
Gold will be held in a US based gold fund (denominated in USD).
LT Bonds and cash are to be held in my local currency.
There's been a claim that this approach creates an unhealthy tilt to my portfolio which will require me to buy foreign (=US) LT bonds and t-bills to symmetrically "mirror" my diversification to the other asset classes.
However, from the book I understand that buying foreign bonds and t-bills is NOT recommended.
Can someone please help me settle this contradiction?