{"id":6687,"date":"2023-04-10T11:24:16","date_gmt":"2023-04-10T16:24:16","guid":{"rendered":"https:\/\/schenkelberg.investments\/?p=6687"},"modified":"2023-04-10T11:24:34","modified_gmt":"2023-04-10T16:24:34","slug":"international-stocks-turn-to-shine","status":"publish","type":"post","link":"https:\/\/schenkelberg.investments\/?p=6687","title":{"rendered":"International Stocks Turn To Shine"},"content":{"rendered":"\n<p>It may not feel like it, but stocks have made a strong comeback since the end of the third quarter of 2022. Despite issues with Silicon Valley Bank and other news items that have roiled the front pages the past couple months, stocks continued to recover nicely from the drop in 2022. The following chart from Koyfin illustrates performance for the following major stock groups since September 30, 2022:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>iShares MSCI ACWI ex U.S. ETF (ACWX in Purple)<strong><\/strong><\/li>\n\n\n\n<li>NASDAQ Index (CCMP in Green)<strong><\/strong><\/li>\n\n\n\n<li>S&amp;P 500 Index (SPX in Red)<strong><\/strong><\/li>\n\n\n\n<li>Russell 2000 U.S. Small Cap Index (RTY in Blue)<strong><\/strong><\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"650\" height=\"336\" data-attachment-id=\"6688\" data-permalink=\"https:\/\/schenkelberg.investments\/?attachment_id=6688\" data-orig-file=\"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image.png?fit=650%2C336&amp;ssl=1\" data-orig-size=\"650,336\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"image\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image.png?fit=300%2C155&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image.png?fit=650%2C336&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image.png?resize=650%2C336&#038;ssl=1\" alt=\"\" class=\"wp-image-6688\" srcset=\"https:\/\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image.png 650w, https:\/\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image-480x248.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 650px, 100vw\" \/><\/figure>\n\n\n\n<p>Larger U.S. company stocks have climbed over 10%, with International stocks climbing over 20% the past two quarters. It\u2019s been awhile since we have seen international stock outperformance such as this. The following chart from J.P. Morgan Asset Management shows performance of U.S. versus International stocks. The gray bars represent times when U.S. stocks outperformed International and purple lines illustrate times of International stock outperformance.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"595\" height=\"434\" data-attachment-id=\"6689\" data-permalink=\"https:\/\/schenkelberg.investments\/?attachment_id=6689\" data-orig-file=\"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image-1.png?fit=595%2C434&amp;ssl=1\" data-orig-size=\"595,434\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"image-1\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image-1.png?fit=300%2C219&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image-1.png?fit=595%2C434&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image-1.png?resize=595%2C434&#038;ssl=1\" alt=\"\" class=\"wp-image-6689\" srcset=\"https:\/\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image-1.png 595w, https:\/\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image-1-480x350.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 595px, 100vw\" \/><\/figure>\n\n\n\n<p>U.S. stocks have significantly outperformed International since approximately 2008. That is a very long stretch of outperformance. Outperformance by U.S. or International stocks typically occurs in multiyear chunks based on relative trends in economic conditions. For diversified portfolios that typically hold International stocks long term, outperformance by U.S. stocks can make comparisons to major indices, like the Standard and Poor\u2019s 500 Index, very difficult.<\/p>\n\n\n\n<p>International economic conditions are starting to show signs of stabilization. As yields have risen, investors are taking note of higher dividend opportunities. International stocks historically have a higher dividend yield than U.S. stocks.&nbsp; However, in recent years this deviation has gotten quite high. As of March 31, 2023, International dividend yields were 1.6% higher than U.S. stocks on average.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"436\" height=\"588\" data-attachment-id=\"6690\" data-permalink=\"https:\/\/schenkelberg.investments\/?attachment_id=6690\" data-orig-file=\"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image-2.png?fit=436%2C588&amp;ssl=1\" data-orig-size=\"436,588\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"image-2\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image-2.png?fit=222%2C300&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image-2.png?fit=436%2C588&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image-2.png?resize=436%2C588&#038;ssl=1\" alt=\"\" class=\"wp-image-6690\" srcset=\"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image-2.png?w=436&amp;ssl=1 436w, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image-2.png?resize=222%2C300&amp;ssl=1 222w\" sizes=\"(max-width: 436px) 100vw, 436px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"482\" height=\"597\" data-attachment-id=\"6691\" data-permalink=\"https:\/\/schenkelberg.investments\/?attachment_id=6691\" data-orig-file=\"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image-3.png?fit=482%2C597&amp;ssl=1\" data-orig-size=\"482,597\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"image-3\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image-3.png?fit=242%2C300&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image-3.png?fit=482%2C597&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image-3.png?resize=482%2C597&#038;ssl=1\" alt=\"\" class=\"wp-image-6691\" srcset=\"https:\/\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image-3.png 482w, https:\/\/schenkelberg.investments\/wp-content\/uploads\/2023\/04\/image-3-480x595.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 482px, 100vw\" \/><figcaption class=\"wp-element-caption\">Dividend yield is calculated by dividing the stock dividend by price. One major item driving international dividend yields higher is their relative valuation. Dividend yields can climb higher by rising dividends or falling prices. International stocks are selling at a deeper discount than U.S. stocks as measured by price to earnings ratio. The chart below shows international stocks selling at a current P\/E ratio of 12.6 x versus 17.8 x for U.S. While U.S. stocks are slightly above their 20-year average, the international stocks are selling for less than their 20 year average.<br><br>Predicting future performance is never easy. All we can do is look at history and current conditions. Right now, history and current prices, earnings and dividend yields point to an opportunity in international stocks.<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>It may not feel like it, but stocks have made a strong comeback since the end of the third quarter of 2022. Despite issues with Silicon Valley Bank and other news items that have roiled the front pages the past couple months, stocks continued to recover nicely from the drop in 2022. The following chart [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[119,123],"tags":[],"class_list":["post-6687","post","type-post","status-publish","format-standard","hentry","category-market-commentary","category-market-performance"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p7kXxe-1JR","jetpack-related-posts":[{"id":6646,"url":"https:\/\/schenkelberg.investments\/?p=6646","url_meta":{"origin":6687,"position":0},"title":"Market Update. 3rd Quarter 2022","author":"J.J. Schenkelberg, CFA","date":"October 18, 2022","format":false,"excerpt":"IndexThird Quarter 2022Year\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To-Date 2022S&P 500-5.3%-24.8%Dow Jones Industrial Average-6.7%-21.0%Russell 2000-2.5%-25.9%\u00a0\u00a0MSCI EAFE (International Index)-10.4%-27.2%\u00a0\u00a0Barclays Aggregate Bond-4.6%-14.5% Performance Source: Koyfin U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of -5.3% for the Third Quarter of 2022. U.S. stocks outperformed international for the quarter as\u2026","rel":"","context":"In &quot;Market Commentary&quot;","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6712,"url":"https:\/\/schenkelberg.investments\/?p=6712","url_meta":{"origin":6687,"position":1},"title":"Time Is On Your Side","author":"J.J. Schenkelberg, CFA","date":"October 16, 2023","format":false,"excerpt":"Standard & Poor\u2019s 500 Index total return for the Third Quarter of 2023 was negative (-3.3% according to J.P. Morgan). We haven\u2019t experienced a negative quarter since Third Quarter 2022. We have seen some drastic ups and downs in market performance the past couple of years. Total return for the\u2026","rel":"","context":"In &quot;Market Commentary&quot;","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/10\/image.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/10\/image.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/10\/image.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2023\/10\/image.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":6792,"url":"https:\/\/schenkelberg.investments\/?p=6792","url_meta":{"origin":6687,"position":2},"title":"Same Story on Repeat. Once Again The S&amp;P 500 Index Leads in 2024","author":"J.J. Schenkelberg, CFA","date":"January 9, 2025","format":false,"excerpt":"In 2017 Warren Buffett is quoted as saying,\u201cConsistently buy an S&P 500 low-cost index fund.\u00a0 Keep buying it through thick and thin and especially through thin.\u201d This advice has certainly been extremely lucrative since 2017. I would go so far as to say the S&P 500 is currently in a\u2026","rel":"","context":"In &quot;Market Commentary&quot;","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2025\/01\/image-1.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2025\/01\/image-1.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2025\/01\/image-1.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2025\/01\/image-1.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2025\/01\/image-1.png?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":6678,"url":"https:\/\/schenkelberg.investments\/?p=6678","url_meta":{"origin":6687,"position":3},"title":"Market Update. 4th Quarter 2022","author":"J.J. Schenkelberg, CFA","date":"January 10, 2023","format":false,"excerpt":"IndexFourth Quarter 2022Year\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To-Date 2022S&P 5007.1%-19.5%Dow Jones Industrial Average15.3%-8.8%Russell 20005.8%-21.6%\u00a0\u00a0MSCI EAFE (International Index)17.7%-14.4%\u00a0\u00a0Barclays Aggregate Bond1.6%-13.0% Performance Source: Koyfin U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of 7.1% for the Fourth Quarter of 2022. U.S. stocks lagged international for the quarter as\u2026","rel":"","context":"In &quot;Market Commentary&quot;","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6637,"url":"https:\/\/schenkelberg.investments\/?p=6637","url_meta":{"origin":6687,"position":4},"title":"Market Update. Second Quarter 2022","author":"J.J. Schenkelberg, CFA","date":"July 7, 2022","format":false,"excerpt":"U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of -16.5% for the Second Quarter of 2022. U.S. stocks marginally outperformed international again for the quarter as measured by the iShares MSCI EAFE ETF, a representation of international stocks outside the U.S. EAFE\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6578,"url":"https:\/\/schenkelberg.investments\/?p=6578","url_meta":{"origin":6687,"position":5},"title":"S&#038;P 500 Leaders &#8211; What Drives S&#038;P 500 Index Performance","author":"J.J. Schenkelberg, CFA","date":"October 15, 2021","format":false,"excerpt":"When investors turn to market newsmakers they are often given S&P 500 index performance as a proxy for how the stock market has performed for the day, week, month, year. What they don\u2019t readily publicize is how many other thousands of stocks are in the investment market and how these\u2026","rel":"","context":"In &quot;Market Commentary&quot;","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2021\/10\/SP-top-ten.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2021\/10\/SP-top-ten.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2021\/10\/SP-top-ten.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts\/6687","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6687"}],"version-history":[{"count":1,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts\/6687\/revisions"}],"predecessor-version":[{"id":6692,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts\/6687\/revisions\/6692"}],"wp:attachment":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6687"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6687"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6687"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}