Capital Is Rotating Outside the US and Most Portfolios Are Unprepared
A strategist is arguing that investors have been trapped in a US-centric bubble for more than a decade and it is starting to break. The S&P 500 was up around 17% last year, which sounds great, but it still lagged many international markets.
The bigger point: global stocks are leading again across regions and sectors, and many investors simply forgot that capital flows do not stop at US borders. A whole generation grew up assuming US stocks always outperform. That was never the historical norm.
The takeaway is not “sell America.” It is that diversification actually matters again, and the next bull market leaders may come from Europe, Asia, Latin America, or commodities-heavy markets that US indexes barely represent.
If this trend sticks, the biggest risk is psychological. Investors anchored to US mega-cap tech might miss an entire global cycle.
This article from TrendLabs highlights the importance of looking beyond U.S. stocks and considering a global perspective. It emphasizes that many of the strongest performers over the past year are not headquartered in the United States, indicating a shift in global market leadership. The article provides evidence of new all-time highs in various global benchmarks, including Europe, emerging markets, and Asia, suggesting a broad participation in global equity markets. It warns investors against ignoring international stocks and advises them to become more selective as the global trade becomes crowded.
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