I'll admit it... I haven't thought about international stocks in a while. My guess is you haven't, either.

Beware This Bad Advice on International Stocks By Vic Lederman, editorial director, Chaikin Analytics I'll admit it... I haven't thought about international stocks in a while. My guess is you haven't, either. After all, the U.S. market is soaring. The S&P 500 Index is up a whopping 28% so far in 2024. Stocks here are having a banner year. And I must admit, part of me just expected the rest of the world was having a blockbuster year as well. You would hope so, too. But when I dug in, I found that it's not looking so great. For example, Europe's best economies simply aren't keeping up. And they haven't for a long time. That's when it clicked... Investors following the mainstream advice on international stocks have gotten clobbered.   Recommended Links: New Warning Goes Live at 10 a.m. Eastern Time Today One investor from rural South Carolina says the insights he has gained from his network of ultra-wealthy contacts (including one former U.S. president) are something that anyone can put to work. Today, he will share his No. 1 investment idea in a billionaire-backed industry he recommends you MUST move your money into before the end of 2024. Click here to watch – live from Palm Beach, Florida. Wall Street Warns: Stocks Could Be 'Dead Money' for the Next 10 Years Despite recent rallies, big banks such as JPMorgan Chase, Goldman Sachs, GMO, and Apollo Global Management are warning that stocks could now be "dead money" – for the next 10 years. At the same time, well-connected billionaires like Warren Buffett have been selling off U.S. stocks at an alarming rate. Today, one of America's most trusted market experts is stepping forward to explain what's really going on behind the scenes of this bull market – and why, even if you're sitting on large gains right now, you could soon face losses of 50% or more if you do nothing. Click here for all the details. Now, you've probably heard that all investors should hold some international stocks. That's conventional wisdom. And exposure to international stocks is a good idea for some diversification. But brokerage firm Vanguard takes it to the extreme. Here's what the company that pioneered "buy and hold" tells folks in a post on its website:   In general, Vanguard recommends that at least 20% of your overall portfolio should be invested in international stocks and bonds. However, to get the full diversification benefits, consider investing about 40% of your stock allocation in international stocks. Forty percent... That's a massive percentage to allocate to international stocks. It's too high. And if we look at some numbers, we can see why that would mean big underperformance... Take an individual foreign country like Germany, for example. It's Europe's largest economy. And we can measure the country's stocks through the iShares MSCI Germany Fund (EWG). In the chart below, you can see how German stocks compared with America's broad market this year: As I said earlier, the S&P 500 is up roughly 28% this year. Meanwhile, German stocks are only up about 11%. That's terrible underperformance. But looking at just this year isn't completely fair. So let's look at the past five as well... Once again, it's big difference. Over the past five years, the S&P 500 has soared roughly 96%. German stocks are up around 14%. And this is Europe's largest economy we're talking about. Even if you look at Europe as a whole, it doesn't get much better... The iShares Europe Fund (IEV) is up about 20% over the past five years. That's still a far cry from the U.S. market's roughly 96% gain over the same time frame. Put simply, Vanguard clobbered its investors with bad advice on international stocks. The worst part is that many folks believe that Vanguard is the conservative voice. They think "Sure, 'buy and hold' won't lead to outperformance... but at least you'll keep up." Well, investors that followed this supposedly "conservative" advice lost out on big returns... and for years, too. Zooming out only makes it worse. IEV has only gained around 44% over the past 20 years. And EWG has gained around 80%. During that time, the S&P 500 has soared more than 400%. That's two decades of crushing underperformance by international stocks. Sure, there were times in there where international stocks beat the S&P 500. But looking at the big picture... buying and holding international stocks won't get you the returns of U.S. stocks. The data is as clear and as extreme as it gets. Many folks believe that someday, international stocks will outperform. They might be right eventually. But I'll definitely wait for the trend to confirm it. I won't be following Vanguard's bad advice on putting too many "eggs" in the international stocks "basket" any time soon. Good investing, Vic Lederman Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 +0.68% 10 13 7 S&P 500 +0.62% 126 277 93 Nasdaq +1.23% 35 48 17 Small Caps +0.37% 601 979 329 Bonds +1.09% Information Technology +1.83% 33 28 8 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are somewhat Bullish. Major indexes are mixed. *  *  *  * Sector Tracker Sector movement over the last 5 days Information Technology +4.12% Discretionary +2.78% Communication +2.42% Health Care -0.14% Industrials -0.37% Staples -0.42% Materials -0.85% Financial -1.95% Real Estate -2.81% Utilities -2.97% Energy -3.04% *  *  *  * Industry Focus Capital Markets Services 43 19 0 Over the past 6 months, the Capital Markets subsector (KCE) has outperformed the S&P 500 by +18.21%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #2 of 21 subsectors. Top Stocks AMP Ameriprise Financial BSIG BrightSphere Investm BK The Bank of New York *  *  *  * Top Movers Gainers CRM +10.99% NOW +6.22% EW +5.7% GDDY +4.94% PYPL +4.92% Losers CPB -6.24% ALB -5.92% MCHP -5.73% ON -5.5% MKTX -5.48% *  *  *  * Earnings Report Reporting Today Rating Before Open After Close KR COO, LULU, ULTA BF.B, DG No earnings reporting today. Earnings Surprises DLTR Dollar Tree, Inc. Q3 $1.12 Beat by $0.04 SNPS Synopsys, Inc. Q4 $3.40 Beat by $0.10 HRL Hormel Foods Corporation Q4 $0.42 Met estimate *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at STEVENMAGALLANES520.NIMS@BLOGGER.COM. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2024 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. www.chaikinanalytics.com. Any brokers mentioned constitute a partial list of available brokers and is for your information only. 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