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The biggest stock market trade of the year may be at a tipping point

October 10, 2017


Foreign stocks have had a fine year, up more than 20 percent in developed countries and 27 percent in the emerging markets, and more U.S.-based investors have gone along for the ride. But now analysts warn there are factors that can derail the bull run. They note that price-to-earning ratios on foreign stocks are back near pre-financial crisis highs.

Five of the top 10 ETFs this year, as ranked by new investor money, track the MSCI EAFE developed markets index and the MSCI Emerging Markets Index. These overseas ETFs have taken in a combined $62 billion from investors through the end of September — that’s double the haul for top S&P 500 ETFs, according to FactSet Research Systems.

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