I’m sensing a change in the winds.
For the past 15 years, U.S. stocks have had the market winds at their back, outpacing foreign stocks by a whopping 8% per year. However, a shifting policy landscape in Washington may be ushering in a new market environment—and new leaders to go with it.
Early signs are that foreign stocks are faring better under this new regime. For instance, while Total Stock Market Index (VTSAX) is off 0.8% this year (as of March 5), Total International Stock Index (VTIAX) is up 8.1%
We already have exposure to foreign markets in our Portfolios, but today’s trades aim to better harness this shift—without overcommitting.