Unbeatable US Stocks Leave Diversifiers In the Dust

The “America First” trade that surged in the immediate aftermath of Donald Trump’s electoral victory is on display again this week, with banks and smaller companies pushing the stock market ever higher yesterday. Despite some recent monetary-related jitters, investors are continuing to bet that Trump’s policy agenda -- including de-regulation and moves to boost domestic business over foreign competitors -- will add fresh fuel to the long-standing outperformance of US equities over world markets.

This deeply held investor conviction breathes fresh life into a controversial debate in the investment world: With American equities beating pretty much everything out there over the past decade and more, is there any actual point spreading your bets into other markets?