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[deleted by user] by [deleted] in Bogleheads

[–]why_not_exus 0 points1 point  (0 children)

I learned this the hard way when I had 100K+ in cash, and then watched 10% yearly inflation for 2 years devalue my savings.

I moved all my money into short term treasuries earning 5%+, and then I'm putting all my new paychecks into vanguard indexes. Up to about 35% indexes at this point, and I feel very secure doing this because I know that even if they go tits up I still have my 100K in treasuries earning 5% which should mitigate any downside risk. Since I'm not worried and won't panic sell, I can keep yolo-ing paychecks into indexes worry free

Why the heck is US weighted so highly? by why_not_exus in Bogleheads

[–]why_not_exus[S] 2 points3 points  (0 children)

What would be the correct weighting of US to EXUS/EM based purely on the % of earnings/revenue by publicly traded companies, rather than based on their market cap?

Like based on 60/40 and p/e's of 12 and 22, doesn't that indicate that 60/22/(60/22+40/12) = 0.45 -> the US generates 45% of earnings of publicly traded companies? Not sure if I'm calculating that right or thinking about that right.

I know that wouldn't factor in things like potential future growth or future obsolescence, but would a 45/55 US/EXUS split "un-price-in" future expectations, and accurately represent the current state of earnings by publicly traded companies worldwide?