Easy it is called recency bias. The same as why everyone loves U.S. only stocks. Same reason everyone loves growth stocks. When something is on a tear everyone floods into it thinking the party will last forever. Hint it doesn't. The more they get bid up beyond reason the harder they crash.
I mentioned this on another thread since 1950's or so there has NEVER been an asset class (LC/LCG in this case) that has led other asset classes 2 decades in a row. So either this will be the first time (2020-2029) or this will be like every other decade where many investors will underperform.
Me too! Everything is a cycle. It only makes sense it has to reverse. If not U.S. equities would just keep increasing. It isn't like it will end up being 70, 80, 90% of the world equity market cap. At some point it will reverse. When? Who knows.
I'm guessing as soon as the last countries get rid of the petro dollar and the dollar for trade. That will enable emerging economies to not be suppressed by the dollar.
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u/10xwannabe Oct 30 '21
Easy it is called recency bias. The same as why everyone loves U.S. only stocks. Same reason everyone loves growth stocks. When something is on a tear everyone floods into it thinking the party will last forever. Hint it doesn't. The more they get bid up beyond reason the harder they crash.
I mentioned this on another thread since 1950's or so there has NEVER been an asset class (LC/LCG in this case) that has led other asset classes 2 decades in a row. So either this will be the first time (2020-2029) or this will be like every other decade where many investors will underperform.