Thoughts on International Investing

September 24, 2020 vxus investing bogleheads [investing]

As it perodically happens, someone recently posted a thread on the Bogleheads proclaiming that international stocks are a dead horse and they are glad to dismount it - Long Suffering VXUS Holder No More.

I wonder at posts like this. Do people really have so little to do that they actually go through the effort to post their life decisions in a public forum?

For me the thing about international is nobody knows the future. Take a look at the chart below of Vanguard’s Total US Stock Index(VTSAX) and Vanguard’s International Explorer(VINEX). Back in 2008 you would have thought there was NO WAY VTSAX would catch up with VINEX. I know this because in 2008 looked at this exact chart and made the decision to invest a significant portion of my net worth in VINEX.

Since then, VINEX has languished while VTSAX has caught up and blown VINEX out of the water.

When things are good. things are good.

To paraphrase Morgan Housel - We don’t see the irony that history is the study of surprises and changes while using it as a guide to the future.