International stocks (ETF: VEA) have outperformed the S&P so far this year, and even today, are trading at a PE of 19x vs 28x S&P. Even US small caps are at 23x. Sure, the Mag7 concentration drives the S&P 500 PE higher and it will still continue to go up but at some point there’s always mean reversion (which is what is driving international stock outperformance).
I’m curious how everyone is thinking of positioning their 401k portfolios. I’m currently at 55% international, 45% S&P 500 but thinking of reallocating international to 50%, S&P to 35%, and small cap (ETF: VB)to 15%. I’m ~25 years out from retirement so don’t need a lot of bond allocation at the moment.
Thoughts?