Why International Stocks Are Beating the S&P + How Scott Invests his Money
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In this episode of The Prof G Pod, Scott Galloway addresses three listener questions from South by Southwest, focusing on international investing, access to investment opportunities, and the future of teaching. He passionately defends his contrarian prediction that international markets—particularly emerging markets—would outperform U.S. stocks, citing strong returns, cheap valuations, and a weakening dollar as key drivers. He shares his personal investment strategy, favoring global special situations, real estate in elite cities, and public equities with long-term hold potential. On the topic of angel investing, he dismisses inbound pitches, emphasizing his preference for deals with a clear edge, such as those from top-tier VCs or private equity opportunities with board access. He also delivers a blistering critique of the undervaluation of teachers, highlighting their excessive work hours, low pay compared to peers, and the growing impact of AI and phones in classrooms. Galloway calls for systemic reforms, including targeted financial support for low-income families, a tax on private schools, and structural changes to address educational inequality. He concludes with a vision of a more equitable education system where wealth doesn’t dictate opportunity.
International markets, especially emerging markets, are outperforming U.S. stocks in 2026 due to cheap valuations, strong earnings growth, and currency tailwinds from a weakening dollar.
Scott Galloway invests in global special situations, real estate in elite cities (New York, London, Palm Beach, Aspen), and high-quality public equities—avoiding angel investing due to time and risk inefficiencies.
Teachers are underpaid and overworked; their average salary is 30% below comparable college-educated workers, despite working 53 hours a week on average.
AI is transforming education but poses challenges; phone bans in schools have had a more measurable positive impact on student focus than AI bans.
Income inequality in education is extreme: wealthy students receive nearly five times more per-student spending than low-income students, creating a massive academic gap.
…and 2 more takeaways available in PodZeus
Why International Markets Are Outperforming U.S. Stocks
“International is winning even despite the Iran shock. And it doesn't matter which style you pick or asset class, every version of international is beating the U.S. equivalent year to date.”
Scott's Personal Investment Strategy
“I own homes in all of those cities except for Dubai. And I own some rental properties because I think that you're going to see just an explosion in the values.”
Why Angel Investing Isn't for Him
Galloway explains why he avoids inbound angel pitches, calling it the worst asset class due to low success rates, high time costs, and lack of edge. He only invests in private opportunities where he has a competitive advantage or access through top-tier VCs.
The Crisis in Education and the Role of Inequality
“The average SAT score for a middle-income kid is 120 points greater than a lower-income kid. But where income inequality goes just insane is the difference between middle-income and upper-income because then again, see above tutors, private schools, it's 250 points higher.”
Closing Thoughts: Reforming the System
Galloway concludes with a call for systemic reform: taxing private schools, subsidizing housing and insurance for teachers, and using AI to close the educational gap. He believes the market and policy must work together to create a fairer system.
“If you were going to try and create an equivalent playing field... for a low-income kid and a high-income kid. In the SAT, you would spot the low-income kid 370 points.”
“I think there should be a $10,000 per head tax to send your kid to a private school. If you exit the public school infrastructure... you are hurting it.”
“I don't believe in race-based affirmative action. I think we needed it 60 years ago where the academic gap between black and white was double between rich and poor. Now that has flipped.”
Host
Scott Galloway
person
S&P 500
other
Emerging Markets
other
Developed Markets Ex-U.S.
other
Dubai
place
Vanta
organization
ShipStation
organization
Indeed
organization
JP Morgan
organization
What to Make of a Life
book
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