Ten years ago, U.S. stocks were cheaper than European ones. But over the last decade, strong U.S. growth helped American markets pull far ahead.
That’s starting to shift-European stocks just saw their biggest performance edge over the U.S. since 2007, outperforming by over 10%. Even after that, U.S. shares still look more expensive, trading at 24 times earnings versus just 15 times for Europe.
This underscores why we maintain globally diversified portfolios-favoring broad opportunity over a concentrated focus-especially when valuations between regions diverge this meaningfully.
Our RiskFirst® Process helps us stay alert when valuations stretch too far, especially in uncertain environments, while keeping you on track to reach your financial goals.
Discount Across the Pond
- We believe the preservation of capital is key to consistent, long-term investment success.
- Our investment approach is grounded in economic theory and backed by quantitative analysis.
- Managing drawdown risk is a pillar from which we build our portfolios.
60-Second Breakdown: April 7, 2025
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
Best Invest Advise EVER!
Bryan Bourgeois, CEO/Founder of Shorebreak Capital, discusses why 90% of investors fail and how to avoid these common investment mistakes with Conner Small, Partner at Redwood Investment Management, Shorebreak Capital’s dedicated asset manager.
