00:00 Speaker A

You talk about investing overseas as well, David. You emphasize Europe and Japan. What what has changed there, David? What what makes them more compelling opportunities right now?

00:13 David

Well I think the starting point for us is that international diversification is a lynch pin to wealth preservation and growth in our view. We’re fully aware that in liquid markets, you’ve seen an out performance over, you know, last 5, 10, 15 years from the United States. That has produced in liquid markets a valuation gap. Now,

00:44 David

that gap can be explained by difference in differences in sector composition and differences in return on equity. But I think if you’re trying to generate income, if you’re trying to play a theme like energy, if you’re, you know, keen on what you’re seeing out of the reform story in Japan and India, if you believe that certain structural weaknesses that have been present for a long time, the obvious one is European banks are no longer structural weaknesses. I think there are key themes you can play around the world in international markets.

01:21 David

I think we when you go to the next level, you can point into the private space and into the alternative space and focus on markets that in say private equity uh are less competitive than the US, private credit, less developed than the US uh as as well. and then in things like infrastructure, uh you can look around the world and see, you know, countries still building out the basics of infrastructure, a great compliment to the digital infrastructure boom you see on shore here.

01:50 David

So look, we we still believe that US markets are going to perform well. They’re going to be the core of wealth management portfolios in the United States, of course they will. But I think people running a solely US portfolio should consider how high the dollar is, uh how attractive some of the themes internationally are and work with their managers to get that exposure.