03.10.26 Ask An Advisor With Wes Moss - The Clark Howard Podcast Recap

Podcast: The Clark Howard Podcast

Published: 2026-03-10

Duration: 37 min

Summary

In this episode, Wes Moss discusses the increasing interest in international stocks compared to domestic stocks and highlights the importance of asset allocation in investing. He also addresses concerns about the U.S. dollar's status and the implications for investors.

What Happened

Wes Moss opens the episode by addressing a common question among investors: whether it’s time to shift more focus to international stocks. He notes that international stocks have seen substantial gains recently, outperforming the S&P 500 over the past year. With international stocks rising by approximately 36%, compared to a 16% increase in the S&P 500, many investors are questioning if they are underweighted in international investments and if this marks the beginning of a new global investment trend.

Moss emphasizes the significance of asset allocation and cautions against recency bias, where investors may overestimate the future performance of recently successful investments. He explains that while international stocks have caught up recently, the U.S. market had previously dominated for years. Additionally, he discusses the concerns surrounding the U.S. dollar, referencing media narratives about its declining status. However, he reassures listeners that the dollar remains central to global commerce, accounting for about 60% of transactions worldwide, despite some central banks reducing their dollar reserves.

Key Insights

Key Questions Answered

Should I invest more in international stocks now?

Wes Moss discusses the surge in international stocks, which have outperformed domestic stocks significantly over the past year. With international ETFs rising by 36% compared to a 16% increase in the S&P 500, investors are questioning if they should increase their international exposure. However, he cautions against making investment decisions based solely on recent performance, as this can lead to recency bias.

What is recency bias and how does it affect investing?

Recency bias is the tendency of investors to overemphasize the importance of recent performance when making investment decisions. Wes Moss explains that this can lead to the assumption that assets that have performed well recently will continue to do so, which is not always the case. Understanding this bias is crucial for maintaining a balanced portfolio and making informed investment choices.

How does the U.S. dollar's status affect my investments?

Moss highlights that the U.S. dollar remains a critical component of global commerce, despite recent narratives about its decline. He notes that the dollar accounts for approximately 60% of all global transactions, which underscores its entrenched position in the economy. While some central banks are reducing their dollar reserves, this does not indicate a widespread collapse of the dollar's value or status.

What is the importance of asset allocation in investing?

Asset allocation is vital for long-term investment success, as it helps manage risk and capitalize on market opportunities. Wes Moss emphasizes that market leadership can shift over time, making it essential for investors to regularly review and adjust their asset allocations. By diversifying across different asset classes, investors can better navigate changing market conditions.

Are international stocks a safer investment?

Moss suggests that while international stocks have performed well recently, they come with their own set of risks and volatility. Investors should balance their portfolios with a mix of domestic and international assets, considering both the potential for growth and the inherent risks associated with international markets. It's essential to conduct thorough research and maintain a diversified investment strategy.