For years, betting on U.S. stocks was a no-brainer. The S&P 500 has crushed global markets, averaging 13.8% annual returns over the last decade, while international stocks lagged at 4.9%. But here’s the twist—2025 is telling a different story. So far this year, global stocks are up 7.2%, outpacing the S&P 500’s 4.5% gain. Europe just had its strongest monthly outperformance against the U.S. market in a decade, and China’s tech stocks are roaring back, pushing Hong Kong’s market up 12%. Investors are starting to wonder—is it finally time to look beyond Wall Street?
It wouldn’t be the first time. In the 2000s, global markets outperformed the U.S. as China’s economy boomed. And right now, foreign stocks are trading at a 20-30% discount compared to pricey U.S. equities. That’s a lot of potential upside. Does this mean U.S. stocks are doomed? Not necessarily. But history shows markets move in cycles, and international stocks might be getting their turn in the spotlight. If you’ve been all-in on American stocks, it might be time to rethink your portfolio before the tide shifts.
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