Today, the media is obsessed with the “sell America” trade, overemphasizing the need to “sell out” US-based assets to drive portfolio value and income. This obsession is both prudent and necessary, as one cannot Invest with confidence unless one is exposed to alternative asset classes beyond the US economy. However, as the query highlights, this “sell out”书店无法真正帮助投资者系统地复制美国的多元经济，而忽视了重要的一环——多样性。尽管美国拥有Among the most dynamic and diverse economies in the world, but we still need to diversify our portfolio across assets beyond just US blue chips, such as global stocks, real estate investment trusts (REITs), and corporate bonds. This diversification helps mitigate risks associated with US-specific limitations but comes at a cost: failing to realize the potential benefit of such diversification can lead to Holmes, that is, survivorship bias, where poor investments’ losses can erode capital more rapidly than hoped。
However, it’s not merely a matter of avoiding US-based assets arbitrarily but of balancing the importance of diversification with the need to understand and leverage market trends. The query suggests that overexposure to US-specific assets, even if they align with portfolio goals, can lead to significant returns that are not justified by the risks involved。Diversification, regardless of the asset class, is a necessary evil. But the call is clear: it should not be handed down to cryptic, predetermined asset classes that may not align with one’s investment vision or risk tolerance。
The query also contrasts two CEFs: the Nuveen S&P 500 Dynamic Overwrite Fund (SPXX) and the PIMCO Dynamic Income Fund (PDI). While SPXX spreads out investments across US and international equities, it focuses on a defined portfolio, yielding modest returns versus the higher-diversification options. PDI, however, offers lower Treasuries and has managed relatively well in US markets, with the potential for higher returns if US markets underperformed。
Despite the hype around US diversification, the query questions whether the “sell out” media has a legitimate right to tout it as the top choice. The user suggests that while diversification is a critical strategy for long-term success, it cannot be handed down to certain asset classes or investment strategies that do not align with one’s pursued goals。The query encourages investors to combine well-diversified U.S. assets with balanced global investments, a strategy that has been proven to yield strong results。
