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Investors may want to consider boosting their exposure abroad — even with U.S. stocks around record highs

1. Home bias is high; investors should consider international exposure. 2. S&P 500 showed strong gains, continuing upward momentum this week. 3. Emerging Markets ETFs are outperforming U.S. markets, indicating a shift. 4. India's GDP growth projected at 6.2% for 2025, boosting attractiveness. 5. Long-term growth seen in countries like China and India.

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FAQ

Why Bearish?

Increased international investment may divert capital from U.S. markets. Historical context shows similar capital outflows can pressure large indices like S&P 500.

How important is it?

The sentiment of moving investments overseas suggests concern over U.S. market valuations, notably impacting S&P 500 companies reliant on domestic investment.

Why Short Term?

Immediate shifts in sentiment may lead to a quick reallocation away from U.S. equities. Historical investor behavior during bullish overseas trends supports this view.

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