If an investor is inclined to follow the markets they tend to follow one or two U.S. stock market indices. The most common are the S&P 500, Nasdaq and Dow Jones Industrial Average.
However, those incorporate just a minority of the publicly-listed stocks in the U.S. albeit the largest companies. A better proxy for the overall U.S. stock market is the Russell 3000. We also can’t forget to point out that there is still the rest of the world to consider.
The U.S. stock market has dominated foreign stocks since the Great Financial Crisis (see chart below: U.S. stocks in purple, foreign stocks in orange, and global bonds in blue). Continue reading “U.S. Stocks vs. Foreign Stocks”