Why your investing portfolio needs to go international

Let’s get real: the average Gen Z or millennial portfolio today is still very US-heavy. Between S&P 500 ETFs, tech stocks, and US-based robo-advisors, most mobile-first investors are effectively betting on one thing—American exceptionalism, forever. It worked over the last decade. But in 2025? That mono-bet is starting to fray.

Market volatility, geopolitical noise, and overvalued sectors have triggered a rethink. Not just among pros, but among app-native investors who finally see that buying the dip isn’t a risk strategy—it’s a habit. And habits can be dangerous if you stop asking where they lead.

Skyler Weinand, CIO at Regan Capital, put it plainly in a recent conversation with TheStreet: it’s time to stop going 100% domestic. Not because the US is doomed, but because the rest of the world is waking up—and offering real value.

Here’s the new baseline Weinand proposes:

• At least 25% of your stocks should be international
• Keep that primarily in developed markets like Japan, Australia, and Europe
• Layer 5–10% in emerging markets if you can handle the heat (Brazil and India are front-runners)
• Rebuild bond exposure to 30–40% if you’ve got 3–5 year goals, because fixed income is earning again

This is miles away from the classic 80/20 split (stocks/bonds) we were all taught—or worse, the 100% equities YOLO mix most digital-first investors ended up with by default.

If that mix sounds conservative, that’s the point. The future isn’t just about upside. It’s about durability—especially for young investors who are now planning around variable careers, not linear ladders.

1. Valuation Gaps Are No Longer Ignorable

US tech stocks are priced for perfection—and then some. The forward PE ratio of the S&P 500 hovers around 20–25x, while large-cap indexes in Europe and Japan are significantly lower, often in the 13–15x range. That’s not just a deal. That’s a signal: markets outside the US are trading at a discount, and showing decent growth.

2. Production and Capital Are Shifting East

India is finally landing the global manufacturing spotlight. Apple’s multi-year plan to shift production out of China and into India isn’t just a supply chain move—it’s a signal that capital is moving, and with it, long-term value. South America (think Brazil) is quietly rebounding too, especially in commodities and domestic infrastructure.

3. Fixed Income Isn’t Dead Anymore

Bonds are back, and they’re not boring. With yields in the 5–7% range for high-grade paper, fixed income now offers a real return after inflation. That hasn’t been true since before most Gen Z investors had a checking account. In fact, for many portfolios, bonds may outperform equities over the next five years—not in growth, but in risk-adjusted return.

You probably built your portfolio by combining a few low-fee ETFs with some conviction picks—maybe a sprinkle of crypto, maybe some sector plays (AI, green energy, etc.). But if you never looked beyond US borders, your stack might be flatter than you think.

And let’s be honest: most investing apps push US content, US benchmarks, and US-centric dashboards. They aren’t designed to help you think globally. That’s a UI bias, not an investment thesis. But it shapes behavior anyway.

In short? What’s easy to tap isn’t always what’s smart to own.

Sure. The US dollar isn’t going anywhere, and the depth of US capital markets still makes it the most liquid, resilient system in the world. But that’s not the same as saying it’s the only place worth allocating to.

The idea isn’t to abandon US stocks. It’s to recognize that they no longer exist in a vacuum. If you’re planning for multi-decade wealth—retirement, property, or even location-flexible work life—you want exposure to growth wherever it shows up.

And right now? It’s not all happening in San Francisco or New York.

The real challenge is friction. Most retail platforms—even the slickest fintechs—don’t make global investing easy or intuitive:

• Currency risks are buried deep in disclosures
• Country-level concentration in "international" ETFs isn’t explained clearly
• Emerging market ETFs often over-index on China, ignoring growth in India or LATAM
• Bond exposure is limited, confusing, or completely missing

Even the robo-advisors that do include international equities tend to treat it as a box to tick—not a strategy to optimize. That’s not malicious. It’s just... lazy design.

The real flex in 2025 isn’t having 20 stocks in your portfolio. It’s knowing why each one is there—and what your overall allocation is signaling about your risk, your timeline, and your worldview.

Want to make this shift without overhauling everything? Start here:

1. Add global exposure intentionally: VEA, IEFA, or VXUS are solid starting points.
2. Split international by region: Don’t just go “non-US”—decide if you want Japan’s stability, Europe’s value, or India’s upside.
3. Reintroduce bonds: Especially if you have near-term goals. Laddering into fixed income is no longer a boomer move. It’s just smart.
4. Check what your robo is actually doing: If 90% of your “global” plan is still US-based, you’re not diversified. You’re deluded.

The next decade of investing won’t just be about beating inflation or timing rate cuts. It’ll be about building stacks that are resilient across systems—economic, political, technological. That means going global, not just to chase yield, but to reflect how the world is shifting.

Because here’s the thing: your income might be local, but your wealth doesn’t have to be.