Viewpoint: International vs. Domestic
“It was the best of times, it was the worst of times…”, With apologies to Charles Dickens this phrase encapsulates capital market returns so far in 2018. The best of times are being experienced by U.S. equity markets (led by small companies and technology stocks), which have posted near double digit returns as of this writing. Overseas stock markets on the other hand (particularly emerging markets) have posted broadly negative results year-to-date. A critical factor driving this underperformance has been an unusually strong U.S. dollar, which has created a very strong headwind for U.S. investors overseas