Experts and analysts still think that stocks are where U.S. investors should be putting their money to achieve the best growth over the long term. Increasingly, however, they don’t think investors should be putting their money in U.S. stocks.
Wall Street has been a leader in global markets for several years. However, that trend may be drawing to a close, as growth picks up in other markets at a time when U.S. valuations appear stretched by many metrics, suggesting the next leg higher will be abroad.
So far this year, the Vanguard FTSE All-World ex-US ETF
an exchange-traded fund that tracks global stocks but excludes U.S.-based ones, is up 16.9%. That’s nearly twice the 8.2% advance seen by the Vanguard Total Stock Market ETF
which tracks the entirety of the U.S. market. The Vanguard FTSE Emerging Markets ETF
is up more than 22% year to date.
As was recently tweeted by Jack Ablin,…