Is now the time to invest in international stocks?

Core Insights - International markets have outperformed US markets, leading to a shift in investment strategies away from the US due to higher valuations and a loss of confidence in US assets [5][6][12] - The US dollar has depreciated significantly, impacting the attractiveness of foreign investments, particularly in Europe and emerging markets [20][23][34] Market Performance - Major international markets, especially in Europe, have shown strong performance, with southern European countries like Portugal, Spain, and Italy returning over 30% in euros [8][26] - The S&P 500, despite a 17% rise, did not rank among the top 10 performing markets, highlighting the relative underperformance of US equities [6][24] Investment Trends - Investors are reallocating capital from US assets to international markets, driven by geopolitical uncertainties and the desire for better returns [10][12][17] - The trend of diversifying investments into foreign markets is becoming more pronounced, with a focus on undervalued assets and higher dividend yields in countries like Portugal [32][33] Economic Factors - Policy changes, including tariffs and trade uncertainties, have increased equity risk premiums and affected US stock performance on a global scale [10][11][20] - The expectation of continued dollar devaluation may lead to further capital outflows from US assets, as foreign investments become more appealing [22][23] Future Outlook - The expectation is for international markets to continue outperforming US markets in the coming years, with a focus on diversification and risk management [24][27] - Portugal is emerging as an attractive investment destination due to its stability, access to the EU market, and favorable economic conditions [31][34]