FINANCE

Why Foreign Stocks Are Beating US in 2025

Sat Nov 01 2025

A Notable Shift in Global Market Performance

In 2025, foreign stocks are outperforming US stocks, marking a significant shift in global market dynamics. This trend is evident when comparing the performance of different regions.

Regional Performance Highlights

  • Particular Region: Stocks have surged by 56.1% this year.
  • US Market (S&P 500): Grown by 18.3% this year.
  • Global Stock Fund (Excluding US): Achieved a 30.1% return.

The Appeal of Global Diversification

The strong performance of foreign stocks has sparked interest in global diversification. However, it's crucial to note that this year's performance is unusual. Historically, US stocks have often led over the long term.

The Long-Term Perspective

  • US Stock Leadership: Dominant since 2011.
  • Current Rally: Might be a temporary bounce in the long-term trend.

Investor Strategies

Investors are closely monitoring this situation, utilizing tools like ETFs to compare the performance of foreign stocks against US shares. This helps them make informed investment decisions.

questions

    What factors are contributing to the strong performance of foreign stocks in 2025 compared to US stocks?
    How does the performance of US tech stocks compare to the overall performance of US stocks in 2025?
    What historical data supports or contradicts the notion that foreign stocks will continue to outperform US stocks?

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