Chart Talk:

This chart shows the performance of US markets vs. foreign on a rolling three year basis.  Blue means the US is doing better than overseas and orange means the opposite.  You can see that the US has clearly been the place to be since 2009.  We have for the most part increased our international exposure in client accounts in the past 18 months, largely on what you see above.  This underperformance to the US has also meant that on a relative basis these markets are fundamentally more attractive than the US.  Their dividend yields in general have been attractive so we have been paid to wait.  Note that so far in 2017 this relationship has started to change.  Foreign markets have by and large outperformed the US so far.

Link:  Abnormal Returns via Factor Investor.

*Long ETFs related to international markets and the US in both client and personal accounts.