Rest of World investment against USA

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Rest of World investment against USA

The global stock market performance derby moves in big, long-term cycles. U.S. stocks outperform for years at a time, then international stocks take over for the next several years.

Over the past few months, this trade-off has been taking place.
The chart above shows the relative performance of U.S. and global stocks. When the line moves up, U.S. stocks are posting the best performance. And when the line moves down, global stocks have the upper hand.You can see from the steady upward slope that U.S. stocks had been outperforming the rest of the world since 2008, to a degree we’d never seen before. U.S. stocks, driven mostly by the performance of a handful of Big Tech stocks, absolutely crushed global stocks in recent years.But they got a bit too far ahead of themselves. And now the tides are turning.In the chart above, you can see previous turning points like this highlighted in red. After those turns, global stocks went on to outperform U.S. stocks by a wide margin and for many years at a time.

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