You all are probably aware that I have not been a proponent of international stocks for some time. The real-world results of international stock over the last decade have been atrocious when compared to U.S .stocks. In fact, international stocks have only outperformed domestic stocks in two years over the last decade based on data compiled by Blackrock.
There has also been a herding in foreign currency markets towards the safety of the U.S. dollar in recent years, which acts as a headwind on international stocks. International stocks are one of the most under-owned asset classes in portfolios among advisors and clients.
International stocks today are primed for a secular comeback after a decade of underperformance and we intend to be a part of the move. We have already seen some green shoots of outperformance in international stocks in January. I believe it is time to reevaluate a myriad of fresh investment options and consider enhancing exposure to international stocks.
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