How to Build a Global Investment Portfolio for the Next Decade
Yet Goldman Sachs Research’s global strategy team recently highlighted how higher US equity valuations and greater concentration in mega-cap stocks may warrant international diversification. “It might be difficult for US equities to sustain their outperformance with less of a tailwind from valuations, earnings, and the dollar,” Mueller-Glissmann says.
At the same time, Goldman Sachs Research expects the US dollar to depreciate against other major currencies in the coming months. Going forward, non-US investors will have to more closely consider currency-risk in the portfolios, Mueller-Glissmann says. Also, foreign exchange in emerging markets might become more of a tailwind for related assets in coming years.
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