economy
January 28, 2026
'Nearly every investor' could benefit from adding international stocks, expert says—here's why
After years of U.S. outperformance, your portfolio could maybe use a little more diversification, experts say.
TL;DR
- International stocks (MSCI EAFE and Emerging Markets) outperformed the S&P 500 in 2025.
- U.S. investors typically have a significant overweight bias towards domestic equities.
- Global economic growth, stimulus in Europe, AI's impact on emerging markets, and a weaker U.S. dollar boosted international stock performance.
- Diversifying with international stocks can smooth portfolio performance over the long term.
- Developed market stocks offer less reliance on the AI revolution compared to the S&P 500.
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