47 min

Underperformance of International Stocks | Valuations Still Too High‪?‬ Broken Pie Chart

    • Investing

Derek Moore is back with Mike Puck, Director of Business Development at ZEGA Financial to talk underperformance of international stocks and how “everyone” is saying this is the year that trend gets reversed. Mike shares what people were talking about at the Miami ETF Conference around flows into international funds to start the year. Plus, they talk about what investors give up if they rotate out of S&P 500 US type investments and how you might already have international exposure in large US companies. Finally, they discuss the consensus for the US Dollar to drop in 2023 along with some other odds and ends within markets and the economy.
 
 
Why we don’t try and pick markets and instead just Buy and Hedge!
Comparing the performance of international stocks and value stocks
Relative underperformance for over a decade in international stocks
Is 2023 the year international finally outperforms again?
Spain’s IBEX Index price (not including dividends) is the same as it was in 1997-98
Makeup of stocks within the S&P 500 Index vs some international indexes
Looking at the top 100 companies worldwide by market cap
John Hussman Price/Sales ratio chart
Price to sales still higher than average – although margins remain higher than average
Market may be assuming net profit margins will stay elevated
Google searches for Soft Landing are up
Comparing the Nominal GDP growth to the 10-Year Treasury yield
Early 90s Emerging Markets dominance
International stock indexes have less technology and more value type stocks
 
 
 
Mentioned in this Episode:
 
No Volmageddon 2.0 | No Landing for the Economy? https://podcasts.apple.com/us/podcast/no-volmageddon-2-0-no-landing-for-the-economy/id1432836154?i=1000600413796
 
John Hussman article on current valuations https://www.hussmanfunds.com/comment/mc230221/
 
Jay Pestrichelli’s book Buy and Hedge https://amzn.to/3jQYgMt
 
Derek’s new book on public speaking Effortless Public Speaking https://amzn.to/3hL1Mag
 
Derek Moore’s book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr
 
Contact Derek derek.moore@zegafinancial.com

Derek Moore is back with Mike Puck, Director of Business Development at ZEGA Financial to talk underperformance of international stocks and how “everyone” is saying this is the year that trend gets reversed. Mike shares what people were talking about at the Miami ETF Conference around flows into international funds to start the year. Plus, they talk about what investors give up if they rotate out of S&P 500 US type investments and how you might already have international exposure in large US companies. Finally, they discuss the consensus for the US Dollar to drop in 2023 along with some other odds and ends within markets and the economy.
 
 
Why we don’t try and pick markets and instead just Buy and Hedge!
Comparing the performance of international stocks and value stocks
Relative underperformance for over a decade in international stocks
Is 2023 the year international finally outperforms again?
Spain’s IBEX Index price (not including dividends) is the same as it was in 1997-98
Makeup of stocks within the S&P 500 Index vs some international indexes
Looking at the top 100 companies worldwide by market cap
John Hussman Price/Sales ratio chart
Price to sales still higher than average – although margins remain higher than average
Market may be assuming net profit margins will stay elevated
Google searches for Soft Landing are up
Comparing the Nominal GDP growth to the 10-Year Treasury yield
Early 90s Emerging Markets dominance
International stock indexes have less technology and more value type stocks
 
 
 
Mentioned in this Episode:
 
No Volmageddon 2.0 | No Landing for the Economy? https://podcasts.apple.com/us/podcast/no-volmageddon-2-0-no-landing-for-the-economy/id1432836154?i=1000600413796
 
John Hussman article on current valuations https://www.hussmanfunds.com/comment/mc230221/
 
Jay Pestrichelli’s book Buy and Hedge https://amzn.to/3jQYgMt
 
Derek’s new book on public speaking Effortless Public Speaking https://amzn.to/3hL1Mag
 
Derek Moore’s book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr
 
Contact Derek derek.moore@zegafinancial.com

47 min