US stocks may have consistently outperformed their international peers over the past three decades, but AQR Capital Management's co-founder and CIO Cliff Asness believes that streak could be ending and international equities may be a better bet for US investors, according to a report by Fortune.

US stocks may have consistently outperformed their international peers over the past three decades, but AQR Capital Management's co-founder and CIO Cliff Asness believes that streak could be ending and international equities may be a better bet for US investors, according to a report by Fortune.

In a recent article for The Journal, the reports says that Asness – who famously managed to net record returns as stocks fell in 2022 – made the case for US investors looking to international stocks to diversify their portfolios because they present solid relative value based on cyclically adjusted price-to-earnings (CAPE) ratios.

With US mid-cap stocks still trading near the record relative values to their international peers seen in 2021, Asness wrote that stocks from "countries selling at lower valuations should have a higher long-term expected return.”