The oil price crash and global lockdowns have pushed the valuation ratio of international to U.S. stocks to levels not seen since 2000. Back then, the combination of a U.S. Tech bubble and Emerging Market crises resulted in 20+% annual international equity outperformance for the next decade. We estimate that our basket of diversified, developed and emerging international stocks should outperform by similar amounts over the next 10 years.
Investors are likely to look back in years to come and ask themselves why they were paying almost four times more for U.S. equity relative to