Why investors are turning to international stocks amid U.S. market highs
U.S. stocks have reached near-record valuations, creating a wide gap with international markets. Over the past decade, American shares have surged ahead by more than 500%, leaving many investors looking for alternatives. Now, non-U.S. stocks are gaining attention as a way to balance portfolios and reduce risk.
The U.S. stock market currently sits at one of its highest valuations ever. This sharp rise has pushed prices far above historical averages, while international stocks remain within their typical range. The difference has led some investors to reconsider their strategies.
The valuation gap between U.S. and international stocks remains wide. As non-U.S. markets build momentum, funds like VXUS offer investors a way to spread risk. The shift reflects growing interest in global diversification beyond the expensive U.S. market.
