The Big Short
Nov 20, 2023
Shorting equities outside of the US and going long the S&P 500 was one of the best trades of the last decade. While the relative underperformance of the stocks outside of the US continues for now, we would warn investors arriving late to the party that the undervaluation of the ROW stocks is now such that the trend could reverse at the first signs of more economic strength. Also the US economy, while remaining relatively strong, is starting to suffer from the restrictive monetary policy of the Fed.