1. Global equities outperformed Wall Street significantly in 2025. 2. The iShares MSCI ACWX surged 20.5%, outperforming S&P 500 by 10%. 3. Weak dollar boosts overseas asset values, benefiting non-U.S. economies. 4. New trade deals and lower tariffs enhance international market performance. 5. Analysts predict a potential end to U.S. stock market exceptionalism.
The significant outperformance of global equities suggests a potential shift in investor preferences away from U.S. stocks, historically reflected during shifts in economic conditions. Previous instances of similar trends (like the post-2008 recovery) indicated that when global equities outperform significantly, domestic stocks may lag.
The article highlights a major shift in market dynamics that could potentially influence the S&P 500's future performance, significant enough due to emerging global trends impacting investor sentiment and allocations.
If the trend of international stocks outperforming continues, it may redefine investor strategies and allocations over the long term, as historically seen during periods of global economic recovery shifts.