The simple fact of the matter is that there are a lot of really good US companies whose stock can be bought at bargain basement prices. If you have the money to invest and do NOT expect an immediate return on your funds then there is a lot of money to be made right now in US firms.

Another reason I would keep funds invested in the US is that the recession here in the US ripples out to the other world economies. We feel it here first but they will feel it worse.

There are a lot of industries located in other countries that depend solely on exporting goods to the US. Americans are purchasing less, and buying goods made in the US more often than before.

Expect the recession in the US to hit foreign firms harder than US firms. Investing overseas is a much riskier prospect.

That’s just my opinion. What happens in the US will be mirrored and intensified over seas.

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The U.S. economy isn’t headed for a recession.

Good post.

Good points. I even like the re-allocation point. And that’s coming from an MBA who graduated with a 3.8 from a top school (ranked by US News & World Report). Everyone is down on market timing, everyone except Warren Buffet and Phil Town. Buffet laments getting too big and being “unable to dance in and out of the markets.” I don’t necessarily think everyone needs to attempt market timing, but if you have the time to watch the markets and you feel comfortable doing it, it’s YOUR money.

When everyone agrees on a point, that’s usually a good indication to do the opposite.

I always bear in mind that chimps throwing darts at a copy of the stock pages consistently outperform most of the professional financial advisers, including the highly vaunted mutual fund managers that are way overpaid!

I’m not saying to ignore solid financial advice. What I am saying is that investing is a highly personal decision and there are no broad based rules that apply in every situation.

But I do need do encourage caution to anyone considering point two. Every’s stock assets should be diversified beyond their nations borders, however right now is not the time to make that decision. At least in the context of market timing.

“Entering a recession it might make sense to boost that allocation percentage in an international fund and reduce domestic investments, in the short term. “

If someone does not currently hold any foreign stock, it would be a good idea to go through the process of establishing a reasonable asset allocation for your nest egg. However, this is always a good idea and should not be treated as a solution or reaction to a recession.