![]() ![]() ![]() economy, in addition to being the largest, has some unique advantages. stocks might continue to outperform.įirst, the U.S. But those who believe in a domestic-only strategy aren’t just relying on past performance. It might seem that investors who limit themselves to domestic stocks are making a fundamental mistake in assuming that U.S. In the investment world, the standard disclaimer is that past performance does not guarantee future results. That includes, notably, Jack Bogle, the late founder of the Vanguard Group, who said he never owned international stocks in his own portfolio. Because of this sustained outperformance, many investors have long since thrown in the towel on international stocks. stocks have outperformed their international peers, on average, for more than 30 years. Which has delivered the 12 years of outperformance? As you might guess, it’s the S&P 500. It’s the most commonly referenced index for developed international stock markets. stock market, while EAFE stands for Europe, Australasia and Far East. The S&P 500 is broadly representative of the U.S. The two investments in question are the S&P 500 and the EAFE Index. ![]() On the surface, they look similar, except one has outperformed the other in 12 of the past 15 years. SUPPOSE YOU WERE presented with two prospective investments. ![]()
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