Why you shouldn’t bet against the US stock market
America is likely to remain the captain of the fourth industrial revolution
Much has been said about the degree to which US stocks have outperformed their global counterparts. Over the past 10 years owning US stocks has returned 13% compounded per annum (in dollars), versus 5% for the rest of the world.
Given the nearly 8% annual divergence in returns, many would ask if now is the time to invest in Europe, Japan or emerging markets. This is a particularly interesting question for your typical valuation-based investor who believes in mean reversion (as we do) to a lesser or greater degree...