After more than a decade of US market dominance, 2025 may have marked a turning point for global investors. International equities have surged ahead of their US counterparts, evidenced by strong earnings growth and supported by policy reform momentum and a reassessment of “American exceptionalism.”
This broad-based outperformance across Europe, Japan, and emerging markets has prompted investors to ask whether the tide is turning in favor of global diversification. Is this the start of a new structural cycle in market leadership, or simply a short-term correction after years of imbalance?
Since the global financial crisis (GFC), US equities have been the centerpiece of global portfolios, benefiting from a powerful mix of dollar strength, technological innovation, and economic resilience.
This “only game in town” narrative has been reinforced by a record bull market in both the dollar and the technology sector, drawing unprecedented capital inflows and leaving investors structurally overweight US assets.
This post is the first in a series exploring whether this outperformance marks the start of a structural trend or merely a temporary shift, and how global investors can position for it.