Investors on Reddit have a clear US bias. Here is why you should consider other markets too.

US total market cap as % of GDP is much higher compared to the rest of the world. This number is currently at 150% compared to 120% for Japan, 100% UK and only around 60% for Eurozone. The gap has narrowed over the last few months (US was at 200%), but remains well above historical averages. USD also appreciated by 20% against most other currencies during this period making other markets cheaper.

Now there are good reasons why these markets have a lower valuation. Namely slower growth and demographics. But at the same time I think it more than compensates by being cheaper.

Consider the Eurozone which is almost 3x cheaper. Structural issues, high debt, Russia conflict. But the countries are working on structural improvements and integration. With the UK gone it will be much easier. Japan has the demographics issue and high debt too. However, yen is currently at a 24 year low, there is no inflation and a massive structural opportunity for higher labour participation and foreign investment. These are areas that the government is working on.

Let's go a bit further and consider some emerging markets. My two favourites are Poland and Indonesia.

Poland is roughly the size of Spain in terms of population and size, and has a third of its debt. It has one of the best growth prospects in the EU. Excellent geographic location close to the centre. A bridge between east and west. Will massively benefit from the coming integration of Ukraine. However, the total market cap of all public companies there is $180bn. That is roughly the market cap of Adobe. Spain in comparison has a market cap of $800bn.

Indonesia has a market cap of around $400bn which is the size of Nvidia and smaller than Tesla. This is a country with a population almost the same size as the US. Has a huge young working age population that will continue to grow over the next decade fuelling consumption. The country is growing at 5-6% a year. It is arguably becoming one of the next large, low-cost manufacturing centres with many companies abandoning China.

TLDR: US is expensive and its dominance may not last forever. You would be wise to diversify into the currently cheap global markets. Please due your own DD.