Core Insights - U.S. stocks had a strong performance in 2025, with the S&P 500 increasing by 16.4%, despite a significant drop in March and April [1] - International stocks outperformed U.S. stocks, with the MSCI World ex USA index rising by 32.6% due to a weakening dollar and shifts in investment strategies influenced by trade policies [1] - The S&P 500 has shown impressive total returns of 26.3% and 25% in the two preceding years, with an average annual return of 14.8% since 2009, significantly above its historical average [5] Investment Performance - The S&P 500's stock prices have increased at more than double the rate of cumulative earnings-per-share growth since 2009, leading to a high forward price-to-earnings (P/E) ratio of nearly 22 times forward earnings expectations [6] - The cyclically adjusted price-earnings (CAPE) ratio, developed by economist Robert Shiller, has surpassed 40, a level not seen since the dot-com bubble, indicating potential overvaluation in the market [7] Future Outlook - Shiller forecasts muted returns for the S&P 500 over the next decade, predicting average annual nominal returns of only 1.5%, which may not keep pace with inflation [8] - Investors are encouraged to consider whether international stocks can maintain their momentum and continue to outperform in 2026 and beyond [3]

As an investor, what are you afraid of? We have seen some volatility this week — and the bounceback on Wednesday, following Tuesday's broad decline, may not seem unusual. But after several years of a U.S. bull market led by Big Tech, a long-term investor might be well served by diversifying beyond the concentrated U.S. stock market. Over the past year, broad international stock indexes have outperformed the S&P 500 SPX. But you may have hesitated to add exposure to non-U.S. stocks in your portfolio. In case ...

Group 1 - The core argument is that all risks are concentrated in U.S. stocks, prompting the need for investors to consider diversifying their portfolios towards Europe [1] Group 2 - Deutsche Bank suggests that diversification into European markets may mitigate risks associated with U.S. equities [1]

Core Insights - Bank of America has identified AT&T among 16 stocks recommended for investors seeking diversification away from AI-related investments [1][8] - The selected stocks are believed to be undervalued, have seen profit estimates raised in the last three months, and are trading at least 10% below their 52-week highs [2][8] Consumer-Focused Stocks - Notable companies include AT&T, Walt Disney Co., Dollar General, and Viking Holdings, which are familiar to American consumers [4][8] - Disney is expected to benefit from its sports offerings and theme parks, while AT&T has exceeded phone subscriber estimates, indicating potential growth [5][8] Financial and Logistics Stocks - KeyCorp and Progressive are highlighted, with Progressive showing strong positive revisions in earnings per share estimates [10] - BGC Group is noted for its dominant position in energy derivatives, and J.B. Hunt Transport Services is recognized for effective cost-cutting measures [11] Industrial and Energy Stocks - Analysts have identified natural gas and energy stocks like Eversource Energy and Oneok, along with Freeport-McMoRan, which is expected to recover from recent operational issues [12] - Industrial firms such as Amcor are considered undervalued following recent acquisitions and leadership changes [13]

Core Insights - Montrose Environmental Group (NYSE: MEG) is a US-based company focused on acquiring environmental testing and services firms, demonstrating consistent growth since its IPO during the pandemic [1] Company Overview - Montrose Environmental Group has continued to expand its operations despite the challenges posed by the pandemic, indicating resilience in its business model [1] Investment Perspective - The company represents a diversification opportunity in the environmental services sector, appealing to investors looking for growth in sustainable industries [1]