FLJH - International Stocks Are Cheap. Should You Overweight Them?
Ever since the Great Recession in 2008 (technically even before that), the US stock market has traded at a premium to most other markets (See the chart below courtesy of Yardeni Research). For years, we've seen investors pointing this fact out and predicting higher returns for international stocks going forward, and for years, we've seen those predictions turn out to be wrong.
(Graphic source: Yardeni Research)
International stocks make up roughly 50% of the global stock market, so how should investors weight their portfolios? Should we finally expect international stock returns to catch