Animal Spirits Podcast Talk Your Book: International Stocks, So Hot Right Now
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Apr 7, 2025 Rahul Sharma, Portfolio Manager at Schafer Cullen Capital Management, dives into the exciting world of international stocks. He discusses the recent outperformance of these stocks compared to U.S. equities, driven by increased spending in Europe and opportunities in China. The conversation touches on the impact of a weakening dollar and how passive investment strategies might misprice international stocks. He also explores the advantages of mutual funds over ETFs for accessing emerging markets and emphasizes the importance of diversification in navigating global investments.
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US Dominance
- US stock market dominance has made investors overlook international stocks.
- Many investors haven't witnessed a sustained period of US underperformance.
Unintended Consequences
- Former President Trump's policies, while seemingly negative, are pushing other countries towards beneficial changes.
- This includes increased defense spending, infrastructure investment, and industry consolidation.
China's Tech Rise
- China's advancements in technology, particularly in AI, are notable and potentially disruptive.
- Chinese tech companies offer similar capabilities to US counterparts but at significantly lower valuations.