Should Investors Be Focusing More on International Stocks?

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?”.

Sources: Russell 3000 and MSCI World Index data.

The information provided is educational and general in nature and is not intended to be, nor should it be construed as, specific investment, tax, or legal advice. Individuals should seek advice from their wealth advisor or other advisors before undertaking actions in response to the matters discussed. No client or prospective should assume the above information serves as the receipt of, or substitute for, personalized individual advice.

This reflects the opinions of Focus Partners or its representatives, may contain forward-looking statements, and presents information that may change. Nothing contained in this communication may be relied upon as a guarantee, promise, assurance, or representation as to the future. Past performance does not guarantee future results. Market conditions can vary widely over time, and certain market and economic events having a positive impact on performance may not repeat themselves. Investing involves risk, including, but not limited to, loss of principal. Asset allocation and diversification may be used in an effort to manage risk and enhance returns. However, no investment strategy or risk management technique can ensure profitable returns or protect against risk in any market environment. Focus Partners' opinions may change over time due to market conditions and other factors. Numerous representatives of Focus Partners may provide investment philosophies, strategies, or market opinions that vary. The appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives.

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