US at Record Highs, China Still Cheap: Where Indian Investors Go

China is the opposite. Its broad-market index trades at 11 to 13 times expected earnings, roughly half the US valuation. That discount exists for a reason: policy risk, geopolitical tension, a weak property sector, and foreign capital that has not fully returned. “Something can stay cheap for a long time,” Shah noted.

He does not advocate picking a winner. The US offers scale and the world's best companies. China offers a lower entry price and a different set of drivers. Because the two markets do not always move together, holding both can reduce portfolio volatility.

For most Indian investors, the easiest route is through ETFs. In the US, an S&P 500 or total market ETF works. Those worried about tech concentration can use an equal-weight S&P 500 ETF, where each company gets a similar share. For China, US-listed ETFs that cover mainland, Hong Kong, and US-listed Chinese shares are common.

Shah recommends a starting allocation of 15-25% of the portfolio to global markets. More aggressive investors can go up to 50%. A small fraction of Vested users allocate 100% globally, but that is rare. For most, 30-35% is a reasonable target, he said.