VEU - Investing Playbook For 2022 - Cash Is Trash But So Are U.S. Stocks
- 2021 has been an excellent year for investors, with the S&P 500 up over 20% YTD.
- However, with inflation levels hitting multi-decade highs, the S&P 500's real earnings yield is now at a historically low level.
- This bodes poorly for the S&P 500's future returns, and investors are well suited to look abroad for better opportunities in the year ahead.
- Cash continues to be trash, especially in this high inflationary environment, but with a real earnings yield of negative 2.33 so are US stocks.
- I believe that the Vanguard FTSE All-World ex-US ETF is the best way for investors to position themselves in a likely more dispersed global growth environment.
For further details see:
Investing Playbook For 2022 - Cash Is Trash But So Are U.S. Stocks