US stocks have been outperforming international stocks for 16 years running, and by a huge margin.
The result: we're now more than 3 standard deviations above the mean in terms of historical US outperformance.
...this can mean
1. We're investing and playing in the 'wrong' stock exchange
2. There's a bubble developing in US stocks: and it is in the position to threaten global markets when it implodes
3. A terrible time to be in ASX seeing us underperforming US while also a terrible time to begin entering the US market given its overextended valuations and incredible complacency
4. Risk: reward for ASX is poor since the upside for ASX to S&P500 is like 1:3 [for every 3% rise in S&P500, we get a 1% rise] but when S&P500 crashes, we can expect ASX to crash even more [ during Covid crash as e.g, S&P500 declined -30.92% from 17 Feb 2020 to 16 March 2020, while XJO declined -32.54% over the same timeframe ].
