Path Financial

For the last four years US stocks outperformed European equities (and much of the world outside the US) by a large margin. Investors may conclude that investing abroad, even in the name of diversification, is nothing but a waste. But this may be a mistake. The very wide gap between US and European stocks seems overdone. US stocks have climbed to unprecedented and precarious levels while Europe has improved on many fronts without much effect on equity prices. This could be the time to diversify away from US stocks, and Europe seems to be the appropriate choice.