1. Overseas stocks are outperforming U.S. stocks for the first time since 2008. 2. Investors are advised to diversify with 35%-40% in international stocks. 3. Recent performance shows non-U.S. stocks returned 18.2% vs. 5.6% for U.S. stocks. 4. U.S. stocks currently have a higher earnings multiple compared to international stocks. 5. Experts predict U.S. earnings growth will slow while non-U.S. markets improve.
Increased interest in international stocks may shift investments away from U.S. markets, particularly the S&P 500, leading to potential declines as capital flows toward overseas equities.
The article reflects changing investor sentiment towards U.S. and international markets, indicating potential volatility and shifts in the S&P 500 performance as a reaction to capital reallocations.
The trend of reallocating portfolios may affect market dynamics in the coming months but could stabilize thereafter as investors reassess their strategies.