Why Rob Arnott Likes International Value Stocks

The video discusses common investment mistakes such as performance chasing and focusing solely on domestic opportunities. It highlights the potential of investing in value stocks outside the US, which are cheaper compared to US stocks. The importance of considering forward returns, rather than past performance, is emphasized. The video also explains how valuation mean reversion towards historical norms can impact investment outcomes.

What is a common mistake investors make according to the video?

• Focusing on future returns

• Chasing past performance

• Investing in undervalued stocks

• Diversifying globally

Why might it be beneficial to consider investing in stocks outside the US?

• They have higher valuation multiples

• They are risk-free

• They are currently undervalued

• They offer guaranteed returns

What is the relationship between US and non-US stock valuations?

• US stocks have higher valuation multiples

• Non-US stocks have higher multiples

• Both have similar valuations

• US stocks are cheaper

What factor is NOT mentioned as part of forward returns?

• Past performance

• Valuation mean reversion

• Historical growth

• Yield

What should investors focus on to avoid common mistakes?

• High-risk investments

• Past returns

• Domestic opportunities

• Forward returns