Investors often wonder if US stocks can continue to outperform stocks in other regions, or if it’s time to shift more of their investments outside the US. Two of the top wealth managers in the US say they have the solution.
Peter Mallouk of Creative Planning and Rebecca Rothstein of RVR Group say they still consider diversification vital even though they have concerns about non-US stocks.
They each manage billions of dollars in assets for the wealthy and are ranked among the best in the industry by Forbes and Barron’s.
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US stocks have dominated their overseas counterparts for years, and it’s prompted a debate over whether that trend will continue far into the future, or if it’s about to go into reverse.
There are strong arguments on each side. Some say the US economy is still the envy of other advanced countries, with better growth and a 10-year expansion that doesn’t look close to ending. Meanwhile, international stocks are less expensive after struggling for years, and conventional wisdom suggests they can’t underperform forever.
But some of the most acclaimed wealth managers in the US say they aren’t picking a side. They’re getting around the debate by focusing on US stocks that give them the exposure they want without taking on more risk than they’re comfortable with.
“We hold a very large position in US large-cap stocks,” Creative Planning President and CIO Peter Mallouk told Business Insider in an exclusive interview. “We do invest globally, but account for the fact that a large cap US portfolio is already global in nature.”
Barron’s has ranked Mallouk the nation’s best wealth manager four times in recent years. His firm manages more than $40 billion, which makes it the largest independent wealth-management company in the US.
Fellow wealth manager Rebecca …read more
Source:: Business Insider