Reply to Can anyone quantify exactly why international stocks are outperforming S&P 500?

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Reply to "Can anyone quantify exactly why international stocks are outperforming S&P 500?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Foreign investors, including big pension and sovereign wealth funds, hold 18 to 28% of the S&P.  Many are reducing exposure to US mega cap tech stocks due to overstretched valuations, volatility and the need to diversify risk amid geopolitical and economic concerns. There are expectations US interest rates will fall, weakening the dollar and therefore the value of their investments and returns.

At the same time, many US investment funds are also diverting funds to countries like Korea and Brazil. [/quote]
NP. Yes, Sweden, Finland and Denmark are divesting their pension funds from US treasuries, citing US financial instability and Trump’s desire to take over Greenland. I’m sure if we as a country continue the course, there will be more countries that follow. 
https://www.reuters.com/business/finance/big-north-european-investors-reassess-us-exposure-geopolitical-risk-mounts-2026-01-22/[/quote]

Other countries are already doing that. Australia has the fourth biggest pot of pension funds in the world - about $4.2 trillion - and they have been trimming their US exposure for the last 12 months. Presumably other countries are already doing this too.[/quote]

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