But my question is WHY have US valuations increased? Reasons include: Currency appreciation, leading technology, better relative demographics, shareholder friendly governance…We’ve detailed the reasons for outperformance the last decade, it’s due to change in valuation and currency, not fundamentals
Thanks for the detailed reply… maybe I’m using “expected returns” incorrectly.
How many years has Vanguard been predicting ExUS outperformance? 11 now?
A mix of large cap growth and small cap value outperforms total US stock market.
50% of VWO is China and Taiwan with terminal demographics
Better demographics support higher valuations all else equal? Thus countries with better demographics would have higher expected returns than countries with worse demographics?
What are “gold returns”? Gold is a speculative currency hedge, it has no return stream.
Dividend Yield + Earnings Growth were roughly the same, at around 8.5%
US became more expensive, Intl got cheaper and currencies weakened
Statistics: Posted by TextualChocolate — Mon Feb 17, 2025 12:53 am — Replies 8760 — Views 1906976