I am probably trading more than I should because I am making sure to take profits (and limit losses where applicable) to an acceptable degree because of the crazy over bullish sentiment backdrop. Exhibit A by way of Yardeni.com…
- The Investors Intelligence Bull/Bear ratio is above the level that preceded the crash of 1987.
- It does not matter yet.
Anyway, at the very least I think that global diversification is a good idea insofar as you are a bull. It is interesting to see some of the developed global markets that are only doing recently what the S&P 500, at the instigation of then balls-out Federal Reserve monetary policy, did in 2013.
Here we have the London FTSE as a prime example. It is no coincidence that I am carrying several British stocks currently.
Canada’s TSX is a more recent blue sky flier as well. My exposure here is in the Metals & Mining space.
Russia is more of a bottom feeder type thing. I have the Russia iShares (ERUS) for exposure here.
And of course the Nikkei and its highest level since 1991. I’ve been using the Yen hedged DXJ/HEWJ and a favored Robotics/Automation/Machine Tool stock for Japan.
If the US corrects it’s a good bet that most or all of these will correct too. But the US has err… not corrected and as long as the party is on why not consider diversifying globally?
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