Why International Stocks Are Beating the S&P, and How Scott Invests His Money

The episode opens with a blunt observation: the world’s ultra‑wealthy look and act almost identically. Whether they hail from Buenos Aires or Hamburg, they gravitate toward the same handful of playgrounds—St. Barth, Dubai, London, New York, Palm Beach, and Aspen. This cultural convergence creates a predictable demand curve for luxury real estate and services, which in turn shapes where capital flows. For investors, recognizing this narrow geographic focus helps explain why certain international equities, especially those tied to high‑end hospitality and property, have outperformed the broader S&P 500.

The hosts note that Dubai’s allure is slipping as the Iran‑U.S. tension escalates. Once a magnet for billionaire portfolios, the emirate now faces heightened geopolitical risk, prompting a shift toward more stable hubs like London and New York. Such risk reassessment is a classic driver of cross‑border capital reallocation, and it’s reflected in recent fund flows toward European and Asian markets that offer clearer regulatory environments. This dynamic helps explain why international stocks have been beating the S&P 500, as investors chase higher returns while hedging against regional instability.

Scott’s personal strategy mirrors these insights. He allocates a sizable portion of his portfolio to non‑U.S. equities, focusing on sectors that serve the ultra‑rich—luxury goods, premium travel, and elite real estate. By diversifying across geographies and monitoring geopolitical headlines, he reduces exposure to any single market’s shock. The conversation underscores that understanding the lifestyle patterns of the super‑rich isn’t just gossip; it’s a practical lens for spotting where global capital is moving and why international stocks are delivering superior performance to the domestic benchmark.