Core Viewpoint - The article discusses the potential of international markets, particularly highlighting the attractiveness of foreign stocks, with a focus on the Chinese market and specific investment opportunities in the technology sector [2][3]. Group 1: Market Analysis - Tim Seymour from Seymour Asset Management suggests that the weakness of the dollar indicates that international markets may continue to outperform the US stock market in 2026 [2]. - Many Asian currencies that previously underperformed against the dollar are expected to perform better in 2026, contributing to the ongoing market rally [2]. - US investors are increasingly confident in international markets, realizing they are underweight in international equities compared to US-based companies [3]. Group 2: Investment Methodology - The list of the 10 Best Performing Foreign Stocks was curated using the Finviz Stock Screener, CNN, and Insider Monkey's Q3 2025 database, focusing on stocks that gained over 50% in the past six months and have more than 10% upside potential [6]. - The performance and upside potential were cross-checked with CNN, and stocks were ranked based on the number of hedge fund holders sourced from Insider Monkey's database [6][7]. Group 3: Company Spotlight - Pan American Silver Corp. - Pan American Silver Corp. (NYSE:PAAS) is highlighted as a top-performing foreign stock, with 38 hedge fund holders and positive sentiment ahead of its fiscal Q4 2025 earnings [8]. - The company is expected to report record quarterly production of 7.3 million ounces of silver and annual production of 22.8 million ounces, exceeding guidance [9]. - Analysts expect the company to post revenue of $1.12 billion and a GAAP EPS of $0.91, with upward revisions in price targets driven by higher forecasts for gold and copper prices [10].

Market Reactions - Retail sales data came in weaker than expected, raising concerns about potential stagflation [1][2] - The upcoming jobs report and CPI data are anticipated to influence market dynamics, with expectations of ongoing steepness in the yield curve [2][3] - Long-end bonds may perform well if weak data is reported, but a subsequent steepening is expected as CPI data is released [3][4] Currency Movements - The dollar index has decreased by 10%, while the Japanese yen has rallied by 17%, indicating a potential short squeeze in the yen [4][5] - The macro community has been eager to engage in long yen trades for the past six years, with this recent rally possibly being another attempt [6] - Despite the yen's long-term depreciation trend, short-term rallies can occur, driven by bearish scenarios for the dollar [7] Investor Sentiment - Current market conditions are causing frustration among investors, leading to defensive strategies and poor decision-making [8][9] - Dislocations in the market are expected, with concerns that equities may experience significant downside movements in the coming weeks [10]

Currency Market Overview - The dollar index (DXY00) fell to a 1-week low, finishing down by -0.83% due to pressure from Chinese regulators advising financial institutions to reduce US Treasury holdings, raising concerns about foreign demand for US dollar assets [1] - The Chinese yuan strengthened, reaching a 2.5-year high against the dollar, further contributing to the dollar's decline [1] - The dollar's losses were exacerbated by comments from National Economic Council Director Hassett, who indicated expectations of slightly lower US job numbers due to slower population growth and higher productivity [1] Foreign Investment Trends - The dollar reached a 4-year low following President Trump's remarks expressing comfort with the dollar's weakness, as foreign investors withdrew capital from the US amid a growing budget deficit and political polarization [2] - The swaps market is pricing in a 19% chance of a -25 basis point rate cut at the next Federal Open Market Committee (FOMC) meeting, with expectations of a -50 basis point cut by 2026 [3] Eurozone Developments - The EUR/USD pair rallied to a 1-week high, finishing up by +0.88%, supported by a weaker dollar and a rise in the Eurozone Feb Sentix investor confidence index to a 7-month high of 4.2, surpassing expectations [4] - ECB Governing Council member Peter Kazimir stated that interest rates should only be altered in response to significant deviations from growth and inflation baselines, with a mere 2% chance of a -25 basis point rate cut at the next ECB meeting [5] Japanese Yen Movement - The USD/JPY pair fell by -0.91%, with the yen recovering from a 2-week low as Japanese Finance Minister Katayama's comments prompted short-covering in the yen, emphasizing communication with financial markets to maintain stability in dollar-yen movements [6]

Group 1: International Investment Landscape - The current dollar weakness is a significant driver affecting international investments, with corporate governance changes leading to the breakup of large conglomerates into smaller, more shareholder-friendly entities [2] - International investors are facing challenges as the traditional hedge of dollar exposure is no longer guaranteed, prompting a reevaluation of investment strategies [3][4] - There is a growing interest in U.S. private markets among international investors, indicating a shift from traditional public equity investments [4] Group 2: Market Performance and Company Updates - Uber's shares have dropped significantly following disappointing fourth-quarter results, highlighting volatility in the ridesharing sector [6] - Eli Lilly forecasts a strong year for sales driven by demand for their weight loss drug, despite warning of a potential double-digit sales drop this year [7] - Netflix is defending its merger with Warner Bros. Discovery, arguing that it will enhance content availability for consumers, although the deal is under DOJ review [8]

The dollar’s weakness may be a reflection not of “sell America”, as some excitable observers describe it, but rather “hedge America” https://t.co/B9rjA0eqpm ...

Even as the dollar has weakened over the past 12 months, the S&P 500 has risen by 15%. Why are American assets so strong despite the dollar’s ostensible weakness? https://t.co/B9rjA0eqpm ...

Speaking on Wednesday, Mr Powell said that the court battle “is perhaps the most important legal case in the Fed’s 113-year history”.The investigation into Mr Powell comes after Mr Trump tried to sack Fed governor Lisa Cook over unproven allegations of mortgage fraud, a move that she is contesting in the Supreme Court.“This is the route by which inflation creeps up gradually, and then you find yourself with a problem which only a deep recession can solve.”“I do think that the current situation is a challeng ...

Market Overview - US stocks have reached new record highs, primarily driven by the tech sector, with upcoming earnings reports from major tech companies like Tesla, Meta, and Microsoft being closely monitored [1] - The Federal Reserve is expected to maintain current interest rates, shifting focus back to economic conditions, while also facing scrutiny regarding its leadership and ongoing investigations [2][37] Company-Specific Developments - Amazon has announced a reduction of 16,000 jobs, bringing total layoffs to 30,000 over three months, as part of efforts to streamline operations and reduce bureaucracy [3][4] - The CEO of Amazon indicated that AI advancements will further reduce workforce needs as the company automates more processes [4] - Starbucks reported a 4% increase in same-store sales in the US for the first time in two years, although overall earnings missed expectations [34] - GE Vernova's stock is under pressure despite solid fourth-quarter results and raised guidance, primarily due to a key metric, EBITDA, missing expectations [35] Sector Insights - The tech sector's positioning has been neutral, with expectations of growth slowing in the coming quarters, yet the current setup for mega-cap tech growth appears positive [10][11] - The labor market is showing signs of slowing, with hiring rates at pandemic lows, indicating a cautious approach from companies amid economic uncertainty [16][18] - The dollar's weakness is seen as a mixed factor for corporate earnings, providing a translation benefit but lacking in volume growth [26][28] Earnings Season and Economic Outlook - Earnings season is underway, with expectations for a broadening of growth across sectors, as evidenced by the increase in sectors reporting positive growth [25] - The market is currently in a "wait and see" mode regarding hiring, with expectations that hiring will gradually pick up as earnings improve [21][24]

Joining us now is Abby Joseph Cohen, Columbia Business School professor and retired Goldman Sachs partner. And great to have you. On the day that we crossed through the 7000 threshold on the S&P 500, I know it doesn't mean a lot fundamentally, but it is a big round number.And I wonder what your take is on this continued a i boom. You know, a small CEO said just now his customers are starting to realize that it's sustainable and so are aggressively building up their equipment. Well, I'm delighted to be here ...

Joining us now is Abby Joseph Cohen, Columbia Business School professor and retired Goldman Sachs partner. And great to have you. On the day that we crossed through the 7000 threshold on the S&P 500, I know it doesn't mean a lot fundamentally, but it is a big round number.And I wonder what your take is on this continued a i boom. You know, a small CEO said just now his customers are starting to realize that it's sustainable and so are aggressively building up their equipment. Well, I'm delighted to be here ...