Why International Stocks Could Stay In Vogue

Over the last decade US stocks have outperformed the global equity benchmark by about 35% and have outperformed in eight of the last ten years prior to 2017. But that may all be coming to an end. Indeed, so far in 2017 the United States is the third worst performing developed market country (table 1) even as it has turned in a solid 17.9% on an equal weighted basis. Excluding the information technology sector, the United States is THE worst performing market among developed countries, bring in about 13% versus an average of about 20% on an equal weighted basis (table 2). Below we show a few fundamental factors that suggest international stocks may be the place to be for the foreseeable future.