Global Stocks Outperform US, Time to Diversify

0:00It's March 3rd in Durham, let's get into the news. International stocks crushed the S&P 500 last year, with the MSCI world excluding US index up 32.7% compared to. Just 17.9% for US stocks. That's the best run for global markets outside America since 2009. Fidelity is now warning investors with all American portfolios that they're missing out big time as the rest of the world pulls ahead. Under earnings growth worldwide, a weaker dollar and looser policies in Europe and Asia are driving this shift. The S&P 500 trades at nearly 30 times earnings double its long-term average while international stocks sit around 20 times. Earnings with better dividend yields. Global growth is projected at 3.3% this year, beating America's 2.4%. For everyday investors, sticking solely to US stocks means higher risk and lower potential returns. A portfolio with 20% international could add thousands and gains if globals keep out

1:04performing, plus their hedges against dollar swings, and tech heavy US dips. Wall Street firms like Vanguard and BlackRock agree it's time to diversify. Fidelity spots hotspots in Europe thanks to surging defense spending, Japan from better corporate reforms, and Latin America writing a commodity boom. They screen low-cost exchange traded funds targeting these areas, from broad euro plays to Japan, focused ones, and Brazil heavy Latin options. To get started without hassle, check your current mix and aim for 15-25% in international's using simple broad funds like those, tracking developed or total global stocks, skip chasing last year's winners, watch fees and spreads, and rebalance slowly for long-term wins. This episode is supported by our sponsor, see details in the description. Do you know what is better than earbuds and bed? No earbuds at all. Go L-I-SOLY-PILLOW.com.