FMD Capital Management

Taking A Tour Through Europe ETFs

Written by David Fabian, May 02nd, 2017

The concept of investing in European stocks seems difficult to stomach considering the decade of lost returns versus their U.S. counterparts.  A new post by Michael Batnick, Director of Research for Ritholtz Wealth Management, details the difficult 10-year journey for this foreign investment class.  The U.S. has simply been the star outperformer on the global stage for so many consistent years that the home-bias phenomenon has been taken to a new level.

According to their research, U.S. stocks now make up 80% of the average U.S. investor’s equity portfolio.  The remaining 20% is likely split among a variety of European, Asian, and emerging market exposure.  This overweight exposure towards a high-flying asset class ultimately leaves many investors susceptible to being caught off guard as the pendulum swings in the opposite direction.

Read the complete article at NASDAQ.com