Dr. Alan O'Sullivan

And then I'm just saying, okay, maybe this is a bad time to take that lesson because you are taking it when we are near all-time highs in the relative valuation of U.S.

versus non-U.S.,

and the share of US equities in global portfolios tend to be as high as it's ever been.

Is this a time when you're going to want to go all in with the US?

And clearly many do.

And some of them who have been doing it in the last five years have felt good about it.

And lastly, I say here,

There is, of course, there's always a good story to justify these types of valuations.

And there have been, you talked about the long-run stories, I think things, again, buybacks and monetary policy, fiscal policy, they are important.

But of course, the big story that people think about now is related to technology.

And there was...

First, there was the shift from physical to digital world, which was led by US, you know, initially it was Fang and eventually that morphed into Mag7 and so on.

And now it's very much the AI story.

And it is an important story, but it can go too far.

We find roughly that maybe half of this US outperformance is related to just the tech edge.

And then there's half some other stuff sort of within sector performance.

outperformance.

But I think you have to give the possibility that even if US has got this advantage and AI and Mag7 outperformance might continue on a fundamental sense, the valuation may be so high, the overvaluation may be so big that it's really difficult for them to keep outperforming in return sense anymore.

Sure, sure.

So first there is just this empirical finding and then I try to think why that would be.