Why do you invest heavily in America only stock?

Question

A popular strategy for long term investing is to go all in on SPY500, however this is an American company only decision.I'm curious to get arguments for investing in SPY500 vs Global world equity index fund trackers.We've seen in the past the downfall of Japan markets and if you followed a similar strategy I assume it would of been disastrous long term.

webinvest · Accepted Answer

The Dod Frank Act ensures that the financials of American companies are correct and trustworthy. It&rsquo;s not uncommon for companies in other countries to be faking their numbers but they can&rsquo;t do that here.

akersten · Answer

Well, there was a post on the front page just now linking to an executive order from November that prohibits exchange in certain securities that the government deems beneficial to the CCP, so avoiding having my investments banned by administrative action is one reason.

onecommentman · Answer

I live in America. My family and friends are primarily Americans or are in the process of becoming Americans. I want them to have satisfying employment. That is more important than long-term personal gains. I’ve got mine and I want them to get theirs. Gilt-edged bonds make lousy winding sheets.
(This is a projected rationale and not personal behavior. Helping China out of the Mao morass was worth outside investment to dramatically improve the well-being of 1.4B people, for example. Chinese are people too.)
Haven’t seen many bread lines in Tokyo. Mrs. Watanabe seems pretty happy.

ipnon · Answer

What's the alternative? No other country produces more megacap public companies.