We understand US stocks have performed incredibly well relative to other geographies in recent years. But that’s precisely why we recommend investors not overweight U.S. Stocks. International stocks represent more than 60% of global stock market value.
What’s more, over-concentrating your portfolio in one geography can work in the short term, but it’s the equivalent of market timing, which academic research has consistently shown is next to impossible to consistently get right over the long term. We strongly advocate diversifying internationally in case the recent relative outperformance of U.S. versus International markets reverses, as it almost always does.
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