All articles tagged with #international stocks
US President Trump's tariffs are boosting international stock markets, leading to a reversal where global markets outperform the US for the first time since 2022, driven by valuation gaps, trade reforms, and changing earnings outlooks, with many investors viewing international stocks as more attractive amid trade uncertainties.
Global equities have outperformed U.S. stocks in 2025, driven by factors like currency movements, geopolitical shifts, and divergent fiscal policies, suggesting that international investments may continue to outperform U.S. assets despite recent market gains and trade tensions.
Asian shares declined amid escalating US-China trade tensions as President Trump threatened to impose higher tariffs, with markets showing resilience and expectations of a potential tariff extension, while US stocks remain near all-time highs. Gold and oil prices steadied, and the US Senate passed a significant tax and spending bill amidst political negotiations.
The stock market has rebounded to record highs with optimism about economic resilience, but investors should remain cautious due to frothy valuations, geopolitical risks, and uncertain trade developments. Experts recommend a defensive approach, focusing on value stocks, dividend payers, and international equities, which currently offer attractive valuations and growth potential.
Causeway Capital Management, led by CEO Sarah Ketterer, has been outperforming the competition by utilizing a combination of quantitative and fundamental analysis to identify undervalued European stocks. The firm's main international value equity strategy has generated a 17.6% annualized net return over the past three years, surpassing the MSCI EAFE index by eight percentage points. Causeway's success can be attributed to its focus on companies with significant valuation gaps compared to their U.S. counterparts. Some of their notable investments include Italian bank UniCredit and London-based Rolls-Royce Holdings. Ketterer believes that investing internationally provides opportunities to uncover overlooked companies with potential for improvement in the future.
Warren Buffett has warned that the "incredible period" for the US economy is coming to an end, with persistently high inflation, higher interest rates, and the ongoing banking crisis making him more concerned about investment gains in the year ahead. Berkshire Hathaway was a net seller of equities in Q1 2023, pocketing $10.4bn in stock sales after deducting purchases. Investors should consider diversifying their portfolios with recession-resistant assets, international stocks, and cash, according to Buffett.
Charles Schwab's chief global investment strategist Jeff Kleintop believes that international stocks are an overlooked opportunity right now, as they have consistently outperformed US stocks this year. He notes that the Stoxx Europe 600 index is expected to see 6% earnings growth in the first quarter, versus negative 5% for the S&P. Kleintop is wary about more volatility to come this year and is concerned about the US commercial real-estate sector, which could be complicated especially given lending seen by smaller banks. He also warns that inflation could come in waves, catching markets off guard.