Some observations of 401k in last 10 years

New job also means 401k investment election time. Here are my choices. Large cap: value 10%, index 30%, growth 20%, small cap: value 15%, index 15%, growth 15%. All US stocks :-)

I took a look at my #Siemens 401k 5 year performance, stock funds did better than all other, international stock was weak compared to US :-( The good thing is I keep all (98%) in stock funds.

Ideally we should look at 10 year or longer horizon for 401k, so I looked at as well, international stock was weak in last 10 years too :-(

The reason why international stock did not do well in last 10 years (note by international I mean mostly Japan and Europe), is the economy in both places grew very slowly, much slower than the US rate of about 3%. Japan may have negative growth rate.