VXUS: The Growth/Inflation Quadrant Framework Suggests Caution
Sentiment Analysis
VXUS: The Growth/Inflation Quadrant Framework Suggests Caution
The author assigns a "hold" rating to VXUS, projecting accelerated growth combined with persistent inflation in the second half of the year—an unfavorable scenario for global ex-US equities; The US accounts for 64% of global market cap (up from 42% in 2008), supported by earnings that exceed the rest of the world. US, Japan, Eurozone, and ex-US equities are trading above their historical P/E averages, only emerging markets appear to be at fair value. The framework failed during the Iran conflict, and disruptive themes (memory, AI, defense) could distort the ETF's performance relative to the global market.
I'm not optimistic about Vanguard Total International Stock Index Fund (NYSEARCA: VXUS ) at this moment. My expectations include accelerating growth and hot inflation in H2, which is not the best scenario for a global
Source: Seeking Alpha
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