The S&P 500 keeps falling in our power rankings as global markets have shown resiliency.
The longer-term picture for international is becoming more apparent; favorable valuations, diversification away from growth, and momentum that's capturing the attention of traders.
In 2025, international has smoked the U.S. The ratio below tracks Vanguard's All World Ex US ETF $VEU relative to the U.S. - when it's moving higher it shows that international is outperforming.
There is an argument to be made that this trend is extended in the near-term and we could see a temporary rotation back into U.S. growth as markets find their footing following the tariff fiasco.
But the bigger picture is that evidence is mounting we're in the early stages of a reversal in U.S. dominance that's been present for the last 15 years.
Shall we expect more red from the U.S. moving forward in our rankings?
We think it'd be wise to start thinking seriously about this outcome.
