Question

Hello everyone, I have a question regarding the Golden Butterfly Portfolio. Why is the recommendation for stocks limited to domestic stocks? Does that mean, if I don´t live in the U. S. I should invest only in the local market? If I compare the DAX (Germany) to the DOW, the returns are lower. This brings me to the conclusion that outside the U. S., the recommendation for GBP changes from domestic stocks to stocks from the U. S. or global stocks. Ist that assumption correct?  

Answer 1

It's just to avoid currency risk. Having assets in other currency's just adds extra volatility.  

Answer 2

So if you're in Germany, you can use a German fund company investing in German companies