While the global economy is increasingly interconnected, the U.S. and international markets behave differently. Adding meaningful foreign stock exposure can both enhance long-term returns and reduce portfolio volatility. We believe that most investors are underweight in their exposure to international markets and that asset allocation should reflect actual global market capitalizations. Periods of domestic or international market outperformance tend to last 4-7 years historically. Since 1970 (48 years), foreign stocks have outperformed U.S. stocks in 25 of those years and U.S. stocks outperformed foreign stocks in 23 of the years. Exposure to both markets provides balance in our portfolios, benefitting our clients over the long-term.