In the first quarter, international stocks outperformed U.S. stocks, marking a potential reversal in a decade-long trend of U.S. market dominance. Focus Partners’ Kevin Grogan shares perspectives on staying diversified across regions no matter which one is currently leading the trend.
After years of U.S. stock market dominance, market commentators are questioning whether the tide may be turning. In the first quarter of 2025, international stock performance outpaced U.S. stocks, with the Russell 3000 (a broad measure of U.S. equities) falling by 4.7%, while the MSCI World Index was up 5.8%. This marks a potential trend reversal as U.S. stocks have outperformed international stocks for almost a decade, leading investors to wonder whether they should begin focusing more on international stocks. While it’s difficult to predict short-term market moves, historical data suggests investors could benefit the most from maintaining exposure to both international and U.S. stocks.
If interested in a deeper dive on the question of international performance relative to U.S. performance, we encourage you read our article, “Is U.S. Outperformance Sustainable?”.
