Why Its Time to Invest Globally

The video discusses the divergence in returns between US and global equities, noting historical instances where global equities outperformed the US. It highlights the need for portfolio rebalancing due to these divergences and explores opportunities in Asian markets, particularly in Japan and China. The impact of currency fluctuations, especially the yen and dollar, on market performance is examined. The video concludes with predictions for future market performance, suggesting potential gains in European and Asian markets.

What historical trend is observed when global equities outperform US equities?

• Global equities have outperformed the US in the following year.

• There is no significant trend observed.

• US equities tend to outperform the following year.

• Global equities continue to underperform.

Why might investors need to rebalance their portfolios during periods of return divergence?

• To sell off all international equities.

• To maintain their desired allocation between US and international equities.

• To avoid any changes in their portfolio.

• To increase their holdings in US stocks.

What is a significant factor affecting the returns of Asian markets?

• The weakening of the yen.

• The local political climate.

• The performance of US equities.

• The strength of the US dollar.

How does a strong US dollar impact international economies?

• It weakens international currencies further.

• It has no impact on international economies.

• It boosts purchasing power, allowing more imports from overseas.

• It reduces purchasing power for US consumers.

What is the average forecasted gain for US equities next year according to strategists?

• 3 to 4%

• 5 to 6%

• 7 to 8%

• 9 to 10%