Core Insights - Investors are encouraged to diversify portfolios by adding international stocks alongside U.S. equities to enhance risk diversification as they approach 2026 [1] International Market Performance - The MSCI EAFE index has delivered a return of 30.48% year to date, outperforming the S&P 500, Nasdaq, and Dow Jones Industrial Average, which returned 17.2%, 21.5%, and 14.1% respectively [2] Earnings Growth and Valuation - A Charles Schwab report indicates that international stocks are expected to have a strong year in 2026, with double-digit earnings growth rates anticipated and these stocks currently attractively valued compared to the S&P 500 [3] Portfolio Recommendations - Adding overseas stocks can help investors tap into growth themes less correlated with U.S. markets, with Kinross Gold Corporation, Sony Group Corporation, and HSBC Holdings plc highlighted as strong additions for a resilient portfolio in 2026 [4] Kinross Gold Corporation (KGC) - Kinross Gold has diverse mining operations across several countries and reported third-quarter production of 504,000 ounces, with strong performance from high-quality assets [5][6] - The company has seen a 66% increase in free cash flow to $687 million and a net cash position of nearly $500 million, supporting development projects and shareholder returns [9] - KGC has an expected earnings growth of 147.1% for 2025, with shares up 211.5% year to date [10] Sony Group Corporation (SONY) - Sony has shifted towards an entertainment-focused strategy, with growth driven by PlayStation, which saw a 3% increase in monthly active users to 119 million [11][13] - The sales forecast for fiscal 2025 has been revised upward by 3%, supported by favorable forex movements and solid hardware sales [13] - SONY has a Zacks Rank of 2 (Buy) and shares have rallied 19.3% year to date [14] HSBC Holdings plc - HSBC is focusing on expanding operations in Asia and the Middle East, with net new invested assets in its Wealth business reaching $29 billion [15] - The bank's common equity tier 1 (CET1) ratio was 14.5% as of September 30, 2025, and it expects a dividend payout ratio of 50% for 2025 [17] - HSBC has an expected earnings growth of 14.92% for fiscal 2025, with shares surging 59.9% year to date [18]