As we emerged from our annual Capital Market Assumption (CMA) process recently, we reaffirmed our belief in global diversification, committing to building portfolios that are positioned to take advantage of investment opportunities around the world. It was an important reaffirmation, as many investors have lost faith in global diversification amid persistent outperformance by the S&P 500. This outperformance has continued into 2019 – until recently. Although still lagging on a year-to-date basis, non-U.S. markets have delivered some outperformance.
Is this the start of something big? While market timing is always difficult, we continue to believe that non-U.S. markets present opportunities.
Here are five key takeaways for the month: