One of the striking features of equity returns over the past decade has been the marked underperformance of international equities. EFA has beaten SPY by more than 7% per year for the last decade. The advantage to SPY is only 3.5% per year over the past fifteen years, but this remains a substantial difference. Little wonder that many people are concluding that John Bogle and Warren Buffett are correct that there is no need to invest in anything beyond the S&P 500. On the other hand, fundamental analysis concludes that international equities are cheap compared