The S&P 500 Trails the Global Stock Market by Its Widest Margin Since 1995 as President Trump's Policies Rattle Investors

Core Insights - The S&P 500 has advanced less than 1% year to date, while the MSCI ACWI ex U.S. Index has returned 10%, marking a significant underperformance of the S&P 500 compared to global markets [1] - The MSCI ACWI ex U.S. Index's forward price-to-earnings multiple is approximately 32% lower than that of the S&P 500, indicating cheaper valuations for global stocks [3] - The U.S. Dollar Index has decreased by 10% under President Trump, contributing to enhanced returns for international stocks when converted back to U.S. currency [4] Performance Comparison - Since January 2025, the MSCI ACWI ex U.S. Index has increased by 40%, while the S&P 500 has only risen by 15%, resulting in a 25 percentage point outperformance of international stocks over U.S. stocks during this period [5] - Emerging market stocks are projected to outperform the S&P 500 significantly over the next decade, with Goldman Sachs estimating a 6.5% annual compound growth for the S&P 500 compared to stronger returns in other markets [6]