Why Investors Should Stick With Global Stocks

In this episode of Focus Perspectives, Chief Investment Officer Kevin Grogan reviews the performance of U.S. stocks and international stocks and how it should influence portfolio decisions. In 2023, U.S. stocks outperformed international, causing some investors to question the wisdom of global diversification. The challenge with a diversified portfolio is that you’ll always have some investments that are not doing as well as others. If you follow markets long enough, you’ll find that even large gaps in performance can close quickly. In the early 2010s, after a period where U.S. stocks delivered negative returns over an entire decade, international stocks had positive, though modest, returns. Investors worried then about staying invested in U.S. stocks, until they eventually started outperforming. Today, our advice remains the same: stick with your long-term diversified portfolio.

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