Seven considerations for global investors, highlighting specific drivers that will determine the longer-term spread between U.S. and global markets, the current state of those drivers, and what changes in these components of total return may look like over the coming decade.
Aligning asset allocations with the valuations that drive long-term returns, while adjusting exposure to allow for shorter-term risk-aversion or speculation among market participants, is a systematic way to respond to the ever-changing landscape of investment risk and opportunity.
This discussion was published in December 2007, near the start of the 2007-2009 market collapse, and includes an Epilogue as of October 2017.