Fidelity recently provided a great chart that we thought would be useful for investors. As can be seen below, we are now in one of the longest periods of domestic equity outperformance relative to international equity in 50 years. While all areas of the world face their own challenges, we believe 2017 will prove to be a turning point in this performance discrepancy. Valuations internationally look compelling relative to domestic markets and growth in the emerging markets continues to look strong. While it would have been most beneficial to portfolios to be invested solely in domestic equities over the eight years, hindsight is 20/20 and international equities play a key role in asset allocation as they offer diversification and potentially stronger performance at times.
We remain bullish on international investments, especially the emerging markets. Stay tuned for an upcoming blog on our confidence in the emerging markets!
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As with all investments, there are associated inherent risks including loss of principal. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets.
Past performance is no guarantee of future results. An investment cannot be made directly in an index.
This material is for informational purposes only. It is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument, nor should it be construed as financial or investment advice.
The information presented in this post is based on data obtained from third party sources. Although it is believed to be accurate, no representation or warranty is made as to its accuracy or completeness.
The views and opinions expressed in the referenced articles are those of the writer and may not be the opinion of Beaumont Capital Management. The information above, and the referenced articles, is provided for informational purposes only.