Avoid underweighting North America

Anyone remotely optimistic about prospects for global equities over the next 15 years simply cannot avoid, or significantly underweight, US equities.

If the recovery does not happen in North America then it will not happen elsewhere. The US currently accounts for over 25% of world GDP, with just 5% of the world’s population. It is the powerhouse of the global economy, but despite its size, remains remarkably dynamic. This is largely because it pursues free-market policies which encourage enterprise and reduce unemployment. Compared to the eurozone, over the last decade, the US has enjoyed twice the level of GDP growth and accrued half the level of unemployment. There are a number of compelling reasons for investing in US stocks. There...