• Explore Go Global investing as capital shifts from overvalued US markets facing domestic volatility.
• Discover undervalued Go Global shares in European and Asian markets offering compelling valuations.
• Access unique growth in sectors like European industrial tech and China's expanding consumer economy.
• Use Go Global stocks to diversify portfolios, reduce US-centric risk, and capture worldwide growth.

A Quiet Exodus from American Markets

There’s an awful lot of noise coming out of America these days. Between the political theatre and the breathless reporting on a handful of tech stocks, you could be forgiven for thinking it’s the only game in town. But if you listen carefully, you can hear a different sound. It’s the quiet, deliberate sound of very large sums of money packing their bags and heading for the airport. While retail investors are glued to the drama, I think the smart, institutional money is looking for opportunities elsewhere. And frankly, I believe they have a point.

The Writing on the Wall

Let’s be honest, the party in the US markets has been going on for a very long time, and the drinks are getting expensive. US stocks are trading at valuations that would make a dot-com veteran blush. The price you pay for a slice of an American company is, by historical standards, rather steep. Meanwhile, across the pond in Europe and over in Asia, you can find excellent, world-leading companies trading at far more sensible prices. It’s like choosing between a wildly overpriced flat in central London and a perfectly lovely, larger house in a pleasant suburb. The big money, the pension funds and sovereign wealth funds that think in decades, not days, are noticing this valuation gap. They are quietly diversifying, and it seems to me a perfectly rational thing to do.

Following the New Trade Winds

This isn’t just about finding a bargain, though. The world is changing. America’s focus on its own backyard is forcing other countries to build new relationships and create new supply chains. This is creating a fascinating shift in global economics. Take China, for instance. While Washington engages in trade spats, Beijing appears to be playing a much longer game. Chinese companies are expanding their reach into Southeast Asia, Africa, and Latin America, building new markets that have little to do with American consumers. This creates a vast landscape of opportunity that a purely US-focused portfolio might miss entirely.

Then there’s Europe, which is often overlooked. While America wrestles with itself, Europe, and particularly its German industrial heartland, is quietly getting on with business. German companies are often world leaders in the sort of things that will define the next economic cycle, like advanced manufacturing and green energy technology. They are building the tools for the future while others are arguing about the past. These are not speculative ventures, but established, profitable businesses adapting to a world that is becoming less reliant on a single superpower.

The Simple Logic of Diversification

At its core, this is about not putting all your eggs in one basket. It’s a principle so simple it’s almost cliché, yet a surprising number of investors remain almost entirely exposed to the fortunes of a single country. To me, that seems like an unnecessary risk. Why tie your entire financial future to the political whims and economic cycles of one nation, however powerful it may be? Spreading your investments across different geographies, currencies, and economic systems is one of the few sensible ways to manage risk. This is precisely the thinking behind a strategy that looks at global opportunities, like the one captured in the Go Global, which simply spreads the risk across different markets. It’s not about predicting the future, it’s about preparing for it.

Deep Dive

Market & Opportunity

• US stocks are trading at premium valuations compared to international counterparts, with the S&P 500's price-to-earnings ratio above historical averages.
• Institutional investors are diversifying into international markets in response to US protectionist policies.
• America's share of global economic growth is declining, creating opportunities in other regions.
• Emerging economies offer demographic advantages, infrastructure development needs, and consumption growth not found in mature US markets.

Key Companies

• Total International Stock Vanguard ETF (VXUS): Provides broad exposure to developed and emerging markets outside the US, offering diversification across thousands of companies.
• China Large-Cap ETF iShares (FXI): Offers exposure to large-cap Chinese companies listed in Hong Kong, such as Alibaba, Tencent, and China Construction Bank, which are expanding into Southeast Asia, Africa, and Latin America.
• Germany MSCI ETF iShares (EWG): Provides access to German blue-chip companies focused on advanced manufacturing, renewable energy, and industrial automation, including firms like SAP, Siemens, and ASML.

Primary Risk Factors

• Portfolios concentrated in US assets are exposed to domestic political and economic risks.
• US fiscal policy creates potential long-term dollar weakness concerns.
• US markets face increasing political interference and regulatory uncertainty.
• Home bias, or over-allocating to domestic assets, can lead to missed opportunities and concentrated risks.

Growth Catalysts

• International markets may benefit from a shift in global trade relationships and the creation of new supply chains.
• European and Asian markets offer more compelling valuations compared to US markets.
• China's Belt and Road Initiative is creating new trade corridors, and its domestic consumption is growing.
• German companies are global leaders in industrial technologies and benefit from Europe's focus on green energy and digital transformation.
• Holding assets denominated in foreign currencies can provide a hedge against potential US dollar weakness.