The U.S. stock market consistently outperformed international markets over the past decade.
But that could change.
China’s economic growth could positively influence European stocks and emerging markets.
Eased trade tensions between the United States and China and signs of a strengthening global economy could be good news for international equities and European stocks in particular, according to market strategists.
Some analysts and strategists have been urging clients to move more of their portfolio into international stocks. That advice follows a strong run for the U.S. market that widened the gap between domestic and foreign equities and capped a dominant decade for U.S. stocks.
Since 2010, the S&P 500 rose more than 188%, an annualized rate of about 11.2%. The MSCI World ex US index saw much more modest gains, climbing 50.5% overall or roughly 4.2% per year.
“If your asset allocation has significant domestic exposure and little-to-no international equity exposure, we think now is an excellent time to make a shift,” Bespoke Investment Group said in a note to clients last month.