If the US stock market drops hard will my International mutual fund loose value?

I have Vanguard Intl mutual fund VTRIX. If the US stock markets drop hard what will the effect be on my VTRIX mutual fund? I believe that the US stock markets are overbought. Your opions appreciated.

International funds are good diversifier over time, but in the short term they seem to correlate strongly with the U.S. market. Take a look at the 2000 - 2002 period: int'l funds were not a safe haven during that drop.

probably, but the per centage drop is lightly to be less than for the U S market, much less. The fund has a sound portfolio of relatively conservative investments. I think you will weather whatever storm blows over the horizon relatively well. Remember, the future is unsure. The U S market may not drop at all.

There is such a close correlation nowadays between U.S. stocks and international stocks that it is difficult to imagine one group not reflecting a major move in the other. "drops hard" (your term) would be a major move. International firms' shares are certain to react to it, and thus, so would this mutual fund.

Yes it will. When the US catches a cold, the rest of the world catches pneumonia.