Investment Outlook Is tide changing for international stocks?

Advisors’ exposure to international stocks has consistently decreased since we started collecting data through our portfolio reviews in 2020. In 2025, we saw a slight increase. (See chart below.)

Then international stocks outperformed in 2025 so those who had allocated more to international were among the top-performing portfolios we reviewed in 2025. (See chart below.) The MSCI All World Country Index ex US, representative of large- and mid-cap stocks across developed and emerging markets, returned 32.4% versus 17.4% for the Russell 1000, considered representative of large-cap US stocks.¹

Why international

In their 2026 annual investment outlook, our global market and investment strategists noted that they expect a weaker US dollar and better growth outside of the US to support the performance of non-US assets, especially emerging market (EM) stocks and EM debt. They also stated that lower US policy rates and greater fiscal spending in Europe, Japan, and China should lead to an improved global growth trajectory next year — and higher global stock markets.