By the same logic one should invest in VOO instead of VTI because it has outperformed last 15 years; but I should really invest in magnificent 7 instead of VOO since they have really outperformed the last 15 years, or I should really really just invest everything in NVDA because it outperformed the other 6 the last 15 years....
This extrapolation is absurd, and in fact the flip side conclusion could be that diversification has diminishing returns.
The relative performance of trend US vs. ex-US would used to reverse every 5-10 years. We're going on about 16 years now. I admit this makes it increasingly hard psychologically to stay diversified but these sorts of trends continue until they don't....
For me, the last two years smell like 1999-2000 so I am going to stick with international exposure and even nudge up a little bit.
This extrapolation is absurd, and in fact the flip side conclusion could be that diversification has diminishing returns.
The relative performance of trend US vs. ex-US would used to reverse every 5-10 years. We're going on about 16 years now. I admit this makes it increasingly hard psychologically to stay diversified but these sorts of trends continue until they don't....
For me, the last two years smell like 1999-2000 so I am going to stick with international exposure and even nudge up a little bit.
