Will the S&P 500 continue to rise? Should we look elsewhere?

On December  20, 2020, from T. V……DDS, San Mateo, CA

Question:

Do you see a continuation in the next decade of a rising S&P or should we look at emerging markets, international and small caps over the next decade?

Monday Morning Millionaire Program Answer:

On 4/04/2018, we published an answer to a similar question. Below, you can see an updated version.

To a significant extent, investing in the S&P 500 involves investing globally since most of the 500 companies operate in foreign markets as well as the US.

If we invest in foreign markets directly, we add many avoidable layers of risk such as sovereign risk, currency risk, regulatory risk, property rights risk and more. Many autocratic countries have shown total disregard for property rights, historically.

Concerning emerging and foreign markets, the chart below says it all.