How should investors think about forward returns according to the text?
Why Rob Arnott Likes International Value Stocks
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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.
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What factors are mentioned as influencing forward returns?
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