{"id":1174,"date":"2017-01-11T15:46:42","date_gmt":"2017-01-11T21:46:42","guid":{"rendered":"http:\/\/gpswp.com\/apwealthmanagement\/?p=1174"},"modified":"2017-01-11T15:46:42","modified_gmt":"2017-01-11T21:46:42","slug":"finally-time-international-markets","status":"publish","type":"post","link":"https:\/\/gpswp.com\/apwealthmanagement\/finally-time-international-markets\/","title":{"rendered":"Is It Finally Time For International Markets?"},"content":{"rendered":"
January 11, 2017 | Print View<\/a><\/p>\n US markets have been on a steady climb since they bottomed in March of 2009, and hit new highs again in 2016. A good US economy along with strong corporate profits have propelled US stocks higher by over 250% (total return including dividends) since the bottom. But US stocks only make up approximately one-half of the global stock markets. The other half of the global stock market pie consists of international developed and emerging markets. In the chart below you can see how international developed markets (green line) and emerging markets (blue line) have lagged US stock markets (red line) since the end of the financial crisis:<\/p>\n US markets are well ahead of their highs of 2007, but international markets are still underwater and continue to be mired in their own lost decade. The under-performance has been due to a variety of factors including:\n<\/p>\n These factors have led investors to flee international markets in favor for the US markets to the point where they are generally underweight international stocks. See the chart below illustrating much larger 2016 US fund flows versus global fund flows:<\/p>\n International equity markets are also cheaper than US markets right now. See the chart below highlighting global stock market valuations versus their historical averages:<\/p>\n Looking forward we see several of these factors stabilizing, suggesting that a rebound in international stocks may be on the horizon. Our observations include:<\/p>\n Based on improving economic growth and cheaper valuations, international markets may prove attractive for US investors going forward. Gradient Investments recently introduced a new portfolio to help gain exposure to these dynamics called the \u201cGradient 40 International Stock Portfolio\u201d or G40-I. The G40-I is an actively managed portfolio designed to provide exposure to international markets through individual stocks and ETFs. The G40-I will consist of:<\/p>\n In our opinion the G40-I is an excellent portfolio for those looking to gain international stock market diversification, and is a nice complement to the US based \u201cG50\u201d dividend paying portfolio. The G40-I may be a good fit for the growth investor focused on enhancing long term returns through global diversification. Please don\u2019t hesitate to contact Gradient Investments to discuss the merits of international investing and the benefits of using the G40-I in a household allocation.<\/p>\n Investors Finally Rotating Out Of Bonds<\/a> December 20, 2016<\/p>\n Rising Interest Rates \u2013 What Do We Do?<\/a> November 17, 2016<\/p>\n Election Jitters<\/a> November 3, 2016<\/p>\n 2016 Gradient Elite Advisor Forum Wrap-Up<\/a> October 14, 2016<\/p>\n Market Update<\/a> September 29, 2016<\/p>\n To Raise or Not To Raise Rates? WHEN, not IF is the Question<\/a> September 16, 2016<\/p>\n August Economic Slowdown?<\/a> September 8, 2016<\/p>\n Will Household Debt Curb Economic Growth? It\u2019s All Relative<\/a> August 25, 2016<\/p>\n Market Volatility (time to panic or profit)<\/a> August 18, 2016<\/p>\n What\u2019s Ahead: More Record Highs or a Bull Market Trap?<\/a> July 22, 2016<\/p>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":" Is It Finally Time For International Markets? January 11, 2017 | Print View US markets have been on a steady climb since they bottomed in March of 2009, and hit new highs again in 2016. A good US economy along with strong corporate profits have propelled US stocks higher by […]
\nChart: Stockcharts.com<\/p>\n\n
\nChart: State Street Global Advisors<\/p>\n
\nChart: JP Morgan Asset Management<\/p>\n\n
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Past Market Commentary<\/h3>\n
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