The Case for International Investments: Lessons Learned
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Takeaways:
- Investing has appeared deceptively simple over the past fifteen years, creating a false sense of security.
- In 2025, international stocks significantly outperformed US stocks, revealing the dangers of home country bias.
- The market dynamics shifted, as small-cap value companies in Europe and Japan yielded exceptional returns.
- Recency bias can lead investors to misjudge future performance based on past results, causing financial anxiety.
- A balanced portfolio, inclusive of international investments, is essential for long-term wealth protection.
- Diversification across asset classes, including bonds, is crucial, as market winners rotate over time.
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