International Equities: Looking Beneath the Currency Icing

The podcast examines the potential outperformance of international stocks compared to their U.S. counterparts in 2026. It suggests that while Americans favor domestic stocks, international equities offer compelling opportunities due to solid economic growth, lower interest rates, and converging earnings growth. The Eurozone, UK, China, and Japan collectively represent a significant portion of equity opportunities outside the U.S., with each region exhibiting unique economic dynamics. For example, China faces challenges related to declining birth rates and consumer concerns, while Japan grapples with rising inflation. Fiscal stimulus in various regions, coupled with potential Federal Reserve rate cuts, could further boost international equity returns by weakening the dollar.