International Markets On Sale

August 20, 2008 by TFB

In case you haven't noticed, international markets are having a good summer sale right now. In just three months, Vanguard FTSE All World ex US Index Fund (VFWIX or VEU) is down 20% while the S&P 500 is only down by 11%.

VEU

The sale on emerging markets is even better. Vanguard Emerging Markets Index Fund (VEIEX or VWO) is marked down by 24% in the last 3 months.

VWO

As usual, because I'm now low on international funds, I got myself some good treats from this sale. I hope there are bigger sales in the fall and the Christmas shopping season.

Software picked, likely related posts:

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Comments

3 Comments on International Markets On Sale

  1. arvind on August 20, 2008 | permalink
    2.  

    But is the logic "The market will eventually have to come back up" always a good one? For instance, that logic would have backfired if we had bet on Nasdaq when it was down 20% from its late 90s highs or on Asian markets when they started to go down and eventually crashed.

    I am wondering if something like the "Matt Blackman" trading strategy should be used to see if indeed there is a high probability the market will eventuall come back up?

    The strategy specified in Wikipedia is "Matt Blackman has examined a trading strategy using P/E ratio involving staying out of the market when P/E's 2 year SMA falls below 5 year SMA. It resulted in capturing 91% of the gain by staying in the market for only 42% of the time."

  2. indexfundfan on August 20, 2008 | permalink
    3.  

    The fall in EAFE has kept me busy with tax-loss harvesting. I now have enough losses to offset my income for the next several years (assuming I do not have capital gains). This is one 'benefit' of a bear market. LOL.

  3. TFB on August 20, 2008 | permalink
    4.  

    arvind – I don't know where the market is going. I don't subscribe to any "system" which attempts to forecast where the market is going either. Because I have to buy something, I buy whatever I'm low on. See previous post Rebalance With New Cash.

    indexfundfan – If only they remove that $3,000/year limit on income offset!

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