Non-U.S. Equities Gain Ground as Market Leadership Broadens

Cooling inflation and resilient economic activity are challenging the dominance of U.S. equities and strengthening the case for selective global diversification.

• MSCI ACWI ex-USA returned 15.5% YTD through 14 August, versus 13.7% for the S&P 500 and 15.0% for Nasdaq.
• Non-U.S. equities trade at a valuation discount, while eurozone and Japanese earnings benefit from domestic growth, defense, infrastructure and financials.
• U.S. rate expectations remain uncertain as inflation stays above target and long-term Treasury yields remain elevated.

Explore the full report for a deeper look at the evolving global equity opportunity.