No region or asset class will always dominate the markets. Even the US stocks will underperform, as seen between 2000 and 2010. This is the core lesson of asset diversification. As shown in the table, the 60/40 mix will give you the median return. It will never outperform, nor will investors live to regret it. Should investors move out of their US exposure? Timing is never easy, so the most straightforward approach would be to use a trend-relative model to help. Money will flow toward better opportunities, but diversification remains the best approach to balancing risks in an uncertain world.
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