Two Quants and a Financial Planner Do You Really Need International Diversification? 10 Top Investors Debate
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Dec 23, 2024 
Dan Rasmussen, an investing expert known for discussing the 'Great Rotation' and U.S. equity dominance, dives into the heated debate on international diversification. He highlights how interconnected today’s markets are and questions the long-term trends favoring U.S. stocks. The discussion uncovers currency exposure's role and critiques passive investing flows. With insights from top investors, the conversation explores optimal allocation strategies, market unpredictability, and the case for a globally diversified portfolio, helping listeners refine their investment approaches.
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Defining International Exposure
- What constitutes "international exposure" is unclear.
- Companies listed abroad may have significant U.S. revenue.
US Dominance May Not Last
- U.S. stock dominance isn't guaranteed to continue.
- International diversification benefits investors in most countries.
Tech Bubble Parallels
- Dan Rasmussen discussed how investors who predicted the tech bubble early lost credibility.
- He argues that a similar situation exists now with U.S. versus international equities.