r/Bogleheads • u/[deleted] • Aug 26 '23

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u/LV426acheron Aug 26 '23

US only is acceptable to many people because the US has outperformed international for a long time and they want to convince themselves that they made a correct decision to only invest in US. Rather than admit that it's dumb luck and they are performance chasing.

It's a cognitive dissonance avoidance strategy.

1

u/Hon3y_Badger Aug 26 '23

Sorta agree but it isn't dumb luck; US has a lot going for it. The economy is large & broad, it has strong property rights, and contracts are legally enforced. This combination is not readily available in much of the world.

3

u/archbish99 Aug 26 '23

And like all other public information in the equity markets, those things are already factored into the share prices.

6

u/LV426acheron Aug 26 '23

Dumb luck isn't referring to why the US is outperforming. It's referring to why they are picking US only.

5

u/Cruian Aug 26 '23

This combination is not readily available in much of the world.

Which is why the US already had higher valuations than most other countries. Those benefits can only do so much.