<prompt> Human: I received this in an email from Vanguard today: To further enhance the diversification of your investments, were increasing the international allocations of all Vanguard Target Retirement Funds. The amount allocated to international stocks will increase from 30 to 40 of the overall stock allocation, and the amount allocated to international bonds will increase from 20 to 30 of the overall bond allocation. While the amount allocated to domestic stocks and bonds will be reduced, the overall allocation of stocks and bonds will remain the same. Why is Vanguard making these changes? These changes, which are expected to be completed by the end of 2015, aim to lower the funds long-term volatility. We believe that increasing the international exposure of these funds is in your best interests because it will help you reduce your long-term risk. Research has shown that non-U.S. stocks have diversified the returns of U.S. stocks on average over time. Also, the primary factors driving international bond prices are different from those for U.S. bonds, providing a diversification benefit. The funds allocations will now be more representative of the overall global market.What are your thoughts? Im working on developing my own asset allocation and am trying to wrap my head around just how much to allocate to international funds. 40 international stock seems awfully high. Also do you have international bonds in your allocation?  <response>: The dollar is unusually strong right now and Europe is quite weak. Short term investors are fleeing, so it make a lot of sense for long term investors to go in and get stuff cheap. 