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Don't be a Fair Weather Fan! (or Investor)

Updated: Jan 11

We all know one. Every sports fan hates the opposing fan who only roots or shows their pride when their team is doing well.

Your investment portfolio is the same. What do I mean?

Over the past about 12 years US stocks have outperformed International stocks significantly. As a result of this we’ve seen a lot of investors reduce their international stock weight in their portfolios, and some investors have abandoned international stocks entirely.

Here’s the thing–US vs international stock performance tends to be cyclical.

  • In the 70s international did better

  • Early 80s it was US

  • Late 80s and early 90s back to international outperformance

  • Most of the 90s and early 2000s it was US again

  • International fared better during the Great Recession.

  • Since then US stocks have been on a tear

Now I’m not predicting that 2024 is the year the pendulum swings back in international stocks favor, but I would remind you of one of the cardinal rules of investing: buy low and sell high.

Keeping this mantra in mind, ask yourself if now would be the time to buy or sell international stocks?

This is a huge reason why you need stay disciplined and keep a balanced portfolio; you never know when certain parts of the market are going to skyrocket and others drop.

If you've kept a balanced portfolio you enjoyed the great recent US performance, and if you did any rebalancing during this time you would have been selling US stocks high and buying international stocks low.

Isn’t that what we want to do as investors?

Stay strong and cheer for your team even when they have a down season, and do the same with your investment strategy!

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