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It seems to me that your analysis does not take into account the "deficit financing" route that US government is currently taking. With the dollar continuing to decline due to record trade deficits, there seems to be scope for the US economy to continue its bull run in dollar terms - though our share of the world GDP will continue to shrink. Foriegn stocks are likely to do even better because of the same reason.

Bottomline - it makes sense to base the indexing strategy on world stocks, not just US stocks. Atleast till we have a president or congress that will do something about the deficit.

The Financial Philosopher


I appreciate your comment. I believe you may be mostly correct in your assessment of "world stock" investment. My assessment is that there is more information available about large cap domestic stocks than there is for foreign stocks (in general); therefore US large cap stocks are more efficient. Furthermore, my model portfolio is quite basic and assumes the investor does not have a high tolerance for risk. As you may guess, a philosopher doubts everything, including himself. A philosopher also employs critical reasoning and inspires it in others. I am constantly doubting myself and seeking knowledge so I appreciate your criticism...


Most investors are looking for quick money these days. These kind of model would work miracle for investors who have patience. Very informative. Great work.

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About Kent Thune

  • Kent Thune is a wealth manager, a writer and a philosopher... Read More


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