Lifted by a strong US economy, it was a profitable quarter for global markets, which returned a rewarding 4.28% as measured by the MSCI All Country World Index. But the gap between US stock returns and everywhere else was wide. Absent the 7.08% US return, global markets returned a meager 0.71% against a backdrop of lackluster growth, rising US interest rates, and a stronger dollar. International developed markets returned 1.31%, while emerging markets remained in the red at negative -1.09%. These performance measures may make some investors want to chase higher returns through portfolio reallocation. That’s not a good idea. Sooner or later, the tide will turn, and investors diversifying overseas will be rewarded. We’ll share more about why it’s important to remain diversified after a look at Q3 results.