11 months ago
International Stocks Outpace U.S. Markets Amid Economic Concerns
The U.S. stock market is doing well, but international stocks are doing even better.
This is because some investors are worried about the U.S. economy and trade issues.
The value of the U.S. dollar has also decreased, which helps international companies.
While U.S. stocks have grown a lot in the past, some analysts think they might be too expensive.
Countries like South Korea, Germany, and Japan have seen strong stock market gains.
Experts suggest that investing outside the U.S. can offer better opportunities.
Even though the U.S. economy is still growing, other countries are now catching up, and it's making some investors change where they put their money.
U.S. stocks are up, but international stocks are outperforming them in 2025.
Factors include concerns about the U.S. economy and the strength of the dollar.
The MSCI All Country World ex USA Index has risen 26% in 2025, outpacing the S&P 500.
Analysts suggest international stocks offer attractive prices and diversification.
U.S. economic growth is projected to slow slightly, while international markets show growth.
- Who
- Investors and Analysts
- What
- International stocks are outperforming U.S. stocks, driven by economic concerns and a weaker dollar.
- Where
- U.S. and International Markets
- When
- 2025
- Why
- Concerns about U.S. economic growth, trade wars, and a weaker dollar have led investors to seek opportunities outside the U.S.
Key facts
- S&P 500 2025 Performance
- Up 15%
- MSCI All Country World ex USA Index 2025 Performance
- Up 26%
- Nikkei 225 Increase
- 24%
- WSJ Dollar Index Drop
- 6.3%
- S&P 500 Companies Projected Earnings Multiple
- 23 times
- U.S. Economic Growth (2025 Projection)
- 1.9%
Quotes
Daniel Casali
chief investment strategist at U.K.-based Evelyn Partners
“It just woke up investors to think there are alternatives here”
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“We must diversify a little bit because you really don’t know what’s going to come out of the White House.”
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Ken Ryan
a portfolio manager at Parnassus Investments
“This isn’t only geographic diversification”
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“Investing in U.S. markets is almost becoming a one-way concentrated bet on the development and proliferation of AI.”
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Josh Emanuel
chief investment officer at Wilshire
“The question is, do you want to underweight what is this primary driver of innovation, growth, profit margins?”
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“From our perspective, the answer is no.”
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