Whats the point of a U.S. investor diversifying overseas?
International markets have underperformed the U.S. for most of the last seven years. But I think that is about to change. Q: Why? A: U.S. stocks are much more expensive, and U.S. corporations have already done all the right things to increase shareholder value, as well as used all the accounting tricks to look good. Foreign corporations still have those things ahead of them. So, coming out of this global bear market, the international markets should do better. Q: When will the global bear market end? A: A worldwide recession is still unfolding. But my guess is that 12 months from now it will be clear that the global economy is recovering. I think we’ll see real economic growth around the world at a 3.5% pace a year from now, vs. 2% and falling today. Stock markets will discount a recovery ahead of time, so equities should be improving late this year or early next year. Q: How does the U.S. dollar figure in your forecast? A: We are coming to the end of the strong dollar era. The dollar
