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"most years" US outperformance was based on Free Trade policies pursued by the government in Washington DC at the time. Currently, the government in Washington DC is pursuing Trade War policies that have impacts on capital flows which will naturally result in diminished foreign demand for US based equities. The old policy (Free Trade) produced a valuation premium for US equities. The new policy (Trade War) is removing that valuation premium. Unless and until the government in Washington DC pursues a different set of policies, Ex-US stock markets will continue to outperform. Here are 12 month returns (as of Friday) for a selection of various markets as reflected in ETFs 1 year returns: SPX ... 13.84% - S&P 500 - largest 500 US domiciled corporations. VXUS... 30.04% - Global, excluding US FLCA... 31.09% - Canada VPL... 32.97% - Pacific Region FLMX... 53.22% - Mexico FLKR... 99.15% - South Korea
The DAGA trade (Divest America Generate Alpha) has been massively profitable. 1 year returns: SPX ... 13.84% VXUS... 30.04% FLCA... 31.09% VPL... 32.97% FLMX... 53.22% FLKR... 99.15% Korea and Mexico have wider volatility. Total world (ex-US) and Canada had more steady outperformance (more than double the returns of US stocks).
I sold about half of my holdings 2/3 the way down after L-Day. I was 100% US equities. I am now about 30% US equities and 30% international — VXUS mostly, but ~4% FRDM (liberty emerging markets), ~3% EUAD (Euro Defense), ~1% each in FLMX (Mexico), FLIN (India), and VNM (Vietnam). I am ~5% IAUM (gold) and ~36% cash or treasuries.
Not an individual stock, but FLMX (Mexico etf) is rising on relief that no new tariffs hit the country yesterday.
I think he's a good narrator, but I don't trust his "future" predictions. So I'd take it with a pinch of salt, having said that looks like u/big_deal has on ground evidence of the growth in Mexico, so that's something you can respect and utilize. Also looking at this Index - [https://tradingeconomics.com/mexico/manufacturing-pmi](https://tradingeconomics.com/mexico/manufacturing-pmi) , it seems like the manufacturing index is at Pre-pandemic levels and [https://tradingeconomics.com/mexico/industrial-production](https://tradingeconomics.com/mexico/industrial-production) is also on the rise, along with \~4% Inflation Rate, which should be lower in the coming few years - [https://tradingeconomics.com/mexico/core-inflation-rate](https://tradingeconomics.com/mexico/core-inflation-rate) ETFs with exposure to Mexico - - FLMX - EWW - EMCR EMCR in particular since the new president of Mexico - Claudia Sheinbaum is a climate scientist, so it was a part of her agenda to add more Electric Vehicle production in Mexico - [https://mexicobusiness.news/mining/news/sheinbaum-promote-lithium-evs-0?tag=mining](https://mexicobusiness.news/mining/news/sheinbaum-promote-lithium-evs-0?tag=mining) And TSLA Giga Mexico Overpass was under construction last month per this - [https://www.youtube.com/watch?v=U3sjvCxnFq8](https://www.youtube.com/watch?v=U3sjvCxnFq8) And then you can track their development here - [https://www.buildingtesla.com/#](https://www.buildingtesla.com/#) So again, I think Peter Zeihan, has some solid points, but I would never trade on it, without corroborating the on ground facts.
About 10% across Mexico (FLMX), Brazil (FLBR), and Kuwait (KWT). I have another 15% in non-US developed markets as well.