On a superficial level it seems developed markets have a good chance of achieving excess return on invested capital at this moment in time if your time horizon is medium or long-term. VEA for example has barely posted better returns than the overall US market (-17.21%) yet prices seem to be well supported by earnings with a weighted average P/E multiple of 13.3x and a healthy dividend yield of ~3.3%. I know some companies, especially German ones, are exposed to Russia but those only represent a small percentage of the index. The companies that represent a good chunk of the index are generally wide-moat companies that have at least one key competitive advantage – Samsung, Nestle, Toyota, Roche, Shell, Airbus, and so on…. the catch seems to be that international stocks in general have heavily trailed their US counterparts over the past ten years due to the incredible performance of the tech sector, but who knows what the future holds. Given that cash is earning real returns of like -10% at this moment in time, what does the reddit crowd think of international developed markets?
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