Vanguard and JPMorgan Foresee International Market Outperformance Over Next 10 Years In Recent Reports
It’s impossible to foresee the future, but two of the world’s most trusted investing names augur a world where international markets finally get some love. Two fresh reports from Vanguard and JPMorgan aim to predict the returns that investors can expect over the next decade; the answers might surprise US-based portfolios.
- Vanguard sees international stocks as the most likely to outperform (6.6–8.6% return projection), but US value (6.4–8.4%) and US small caps (6.0–8.0%) won’t be far behind.
- JPMorgan is betting on Japan (~8% annualized return in euros), Eurozone large caps (~7.4%), and China (~6.5%) as the top assets for the next 10–15 years, outstripping US large caps (~5.5%).
What does that mean? Financial institutions have been predicting a slowdown in US markets for many years. However, they haven’t found it yet. The S&P 500 and Nasdaq 100 have risen in all but three of the last 20 years — and returns have seldom been less than double-digits. That said, a projection is just that — a projection. But both reports suggest that investors should carve out an allocation for overseas stocks in their portfolios, alongside a bigger allocation to some bonds.
