The "US market" you are talking about is a select group of 7-10 stocks. Ratios improve greatly if one looks beyond those.
The other way to look at it is that many of the "US" stocks that have performed well are global. For example - Apple has 56% or revenue coming from outside the US. A similar story reveals itself for Nvdia, Microsoft or and other of the big names. So when you buy one of them, you are also buying global revenue and currency diversification.
So it is not really what region you buy but ultimately how much you are paying for it. When looking through a lense of value, there are plenty of opportunities in the US where there is a much more pro business culture and regulatory framework which is much better at explaining US outperformance. Avoiding the hyped up fad stocks of the week is more likely to produce good long term returns than scouring the global back-waters where tighter regulatory or worse - no regulatory environments exist, tax and liquidity issues and potentially unstable governments add risk.
Agreed, Rob, and thank you for your thoughts! Reducing exposure to high beta stocks in favour of more attractively valued opportunities among the remaining 493 S&P 500 constituents makes sense, focusing on strong fundamentals. Valuations matter.
The "US market" you are talking about is a select group of 7-10 stocks. Ratios improve greatly if one looks beyond those.
The other way to look at it is that many of the "US" stocks that have performed well are global. For example - Apple has 56% or revenue coming from outside the US. A similar story reveals itself for Nvdia, Microsoft or and other of the big names. So when you buy one of them, you are also buying global revenue and currency diversification.
So it is not really what region you buy but ultimately how much you are paying for it. When looking through a lense of value, there are plenty of opportunities in the US where there is a much more pro business culture and regulatory framework which is much better at explaining US outperformance. Avoiding the hyped up fad stocks of the week is more likely to produce good long term returns than scouring the global back-waters where tighter regulatory or worse - no regulatory environments exist, tax and liquidity issues and potentially unstable governments add risk.
Agreed, Rob, and thank you for your thoughts! Reducing exposure to high beta stocks in favour of more attractively valued opportunities among the remaining 493 S&P 500 constituents makes sense, focusing on strong fundamentals. Valuations matter.