U.S. Stocks Are Having a Rough Start to the Year

In a dramatic shift for global financial markets, U.S. stocks are experiencing their worst international performance since 1995, signaling potentially profound implications for investors seeking diversified strategies. The MSCI World ex-USA Index has surged 8.2% in early 2026, dramatically outpacing the essentially flat S&P 500 and challenging long-standing assumptions about American market dominance.

This underperformance stems from multiple complex factors, including elevated U.S. stock valuations and increasing geopolitical uncertainty. European and Asian markets have demonstrated remarkable resilience, with most major European stock markets—including Belgian, Norwegian, and Turkish benchmarks—posting double-digit gains and overshadowing U.S. returns.

For precious metals investors, this global market recalibration could signal important portfolio diversification opportunities. The weakening U.S. dollar and stimulus measures abroad are creating fertile ground for international investment strategies that extend beyond traditional U.S.-centric approaches.

Notably, developed markets in Asia and global emerging markets have more than doubled the S&P 500's approximately 17% return since 2025, underscoring a significant structural shift in global investment landscapes. This trend suggests sophisticated investors might need to recalibrate their geographical allocation strategies.

Looking forward, while past performance doesn't guarantee future results, the current market dynamics indicate a potential sustained period of international market outperformance. Investors should carefully monitor global economic indicators, currency fluctuations, and sector-specific developments to navigate this evolving investment environment.