The US stock market has risen madly; is it time to go overseas to allocate global assets?

Recently, the rise of the US stock market has been a bit ridiculous. The AI concept is extremely hot, but some people are starting to ask: Can this last? Coupled with the high concentration of tech stocks (36% of the SP500 are IT), once the AI bubble bursts, the Wallets with Heavy Positions in US stocks may take a hit.

The global market is quietly surpassing the US stock market

Just look at the data and you'll understand:

• S&P Global Index (tracking 24 developed economies) has risen 16.39% over the past year, with a rise of 0.91% quarter-to-date.
• S&P 500: Although well-known, it has been outperformed by global indices during both of these time periods.
• Emerging Markets Index: Up 21.05% over the past year, up 1.05% quarter-to-date, and has been continuously siphoning off investors' money for 3 weeks ($217 million inflow)

In contrast, the US stock funds only attracted $115 million by mid-November, marking the weakest week since mid-October. In other words, smart money is starting to flow out.

Three Types of Global Assets Worth Watching

1. International Blue Chip Fund

These types of funds have a geographically diversified location, which can effectively reduce the concentration risk of US stocks.

• Japan accounts for 20-24%
• The UK accounts for 12-14%
• Canada accounts for 10-11%

The representative funds include FNDF, DFAI, AVDE, SCHF, etc.

2. International Dividend Fund

Companies with stable dividends often have strong risk resilience. During market fluctuations, dividends are like a lifeline:

• IHDG: Dividend Rate 2.58%
• VIGI: Dividend Rate 1.87%
• IDV: Dividend rate 4.54% (this is a bit fierce)

3. Emerging Market Funds (High Risk Tolerance Players)

The yield is stronger, but the volatility is also high. IEMG, VWO, and EEM are common choices.

Core Logic

The risk of a bubble in the US stock market brought about by AI + economic uncertainty = global diversification is a wise move. The performance of the S&P Global Index is already speaking for itself: investment portfolios with international exposure have more controllable risks and decent returns.