Typically, the CAPE ratio has been the best predictor of future decade returns. When stocks are priced far higher than their historical average, a bad decade typically lies ahead. In contrast, when stocks trade far below their historical average, it usually bodes well for stock returns over the next ten years. Historically, the US stock market's CAPE ratios (a measurement of expensiveness) were similar to international stocks. But since 2009, that has changed a lot.
US stocks are ridiculously expensive, so don't put all your eggs in them.
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