1. International stocks outperform U.S. stocks significantly in 2025. 2. A 'great rotation' away from U.S. equities has likely begun. 3. U.S. dollar weakening impacts U.S. asset values negatively. 4. Geopolitical tensions may fuel ongoing market shifts. 5. S&P 500 up 2% YTD, lagging behind international gains.
The shift towards international equity markets suggests reduced investor confidence in U.S. stocks, leading to potential declines in the S&P 500, similar to past instances where global equities outperformed the U.S. during uncertainty (e.g., during the COVID-19 recovery phase).
Changing dynamics in global investment favoring international markets signal a potential downturn for U.S. indices including the S&P 500.
The rapid shift in fund flows indicates immediate concerns over U.S. stock performance, typically affecting the S&P 500 in the short term as capital moves out.