Why Global Small Cap
International Equities are cheapest they have been in recent history
International equities will have to grow 27% per year more than the S&P 500 for 5 years just to get back to the 55-year average – that’s 3.3x total return over just 5 years.
Value stocks cheapest to growth in decades
Value stocks need to compound at 19% more than growth stocks (per year) for 5 years to get back to the long-term averages – nearly 2.4x that of growth stocks
Small vs. large caps are close to 45 year lows
Reversion to the mean would be 7% per year excess performance per year for 5 years