VE VEU Vanguard FTSE All-World Ex-US ETF Loading... : Investor Sentiment and Bull/Bear Views

Favor rest-of-world equities (VEU) over US equities, expecting better relative performance.

The author argues investors should not shift to a 'world minus US' allocation in reaction to short-term political events like a US president's term, calling Europe 'stagnation-land' and dismissing the proposed Canada associate-membership as immaterial. The causal claim is that ex-US developed markets structurally underperform, so tilting away from the US sacrifices returns. The author's stated approach is to remain globally diversified including the US rather than make a tactical ex-US bet. Main risk implied is that this is a general allocation view with no specific catalyst or timeframe.

The author recommends maintaining long rest-of-world stocks within the start-of-year pro-growth and debasement trade, with the strategy run at half risk. He calls this prudent positioning while accepting tactical underperformance versus whichever side gets lucky.