How Global Investing Is Changing

U.S. brands still dominate headlines, yet 2025 has flipped the script: international stocks are outperforming the S&P 500 by more than 16 percentage points, while American companies with heavy foreign‑sales exposure sit in the red. In an era of trade tension and reshoring, where a company earns its revenue matters as much as where it’s headquartered.

For over a decade, many investors favored U.S. markets—and for good reason. U.S. stocks consistently delivered strong returns, bolstered by innovation and a stable economy. But as markets evolve, so must investment strategies. So far in 2025, foreign stocks are not only catching up—they’re leading the way.

One key factor behind this shift is how global growth is spreading. Countries like India, Brazil, and regions in Southeast Asia are expanding rapidly, and many of their stock markets are benefitting from both local economic strength and international investment. Meanwhile, the U.S. dollar has lost some ground, giving an extra boost to international returns for dollar-based investors.