July 23, 2025

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.

Interestingly, U.S.-based companies that rely heavily on foreign sales have struggled. This reversal shows that location of operations—not just corporate headquarters—has become more important. With the rise of reshoring and trade barriers, companies more rooted in their home markets may be better positioned than global multinationals.

For investors, this means revisiting traditional assumptions. A truly diversified portfolio shouldn’t lean too heavily on one country—especially when other markets are proving resilient and full of opportunity. In today’s fast-changing environment, adding exposure to international equities may enhance both growth and balance.

Global dynamics evolve fast. Let’s review how much of your wealth is tied to one economy—and whether your portfolio captures the right mix of domestic resilience and overseas growth.

Omni 360 Advisors is here to help you navigate your investment planning with confidence. Request a complimentary “Global Mix” analysis ➜ click here.

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By: Jason Blackwell, CFA