Is it time to look beyond US equities?

Here's the wake-up call in one chart:

🔸 MSCI World ex USA: +7.52% year-to-date

🔸 MSCI USA: -3.34%

We are not fully there yet, but you can see the divergence.

Why the disparity?

Ironically, Donald Trump's aggressive trade threats have pushed other regions – particularly Europe – into action. Germany, for instance, is unleashing massive fiscal spending on defence and infrastructure. Meanwhile, the US is damaging supply chains and rattling investor confidence with ongoing tariff battles with its own allies.

The upshot: America risks stumbling precisely because it's forcing everyone else to ramp up and innovate. If you're still pinned to US markets alone, it's time to look beyond US equities. The world has changed – and Trump's policies have sped up that change.

There are, however, plenty of opportunities in the US market, especially if you're a trader. One positive aspect of the recent market volatility is that there is a huge amount of dispersion in US equity markets (a new post to follow, perhaps next week).

What are your thoughts on the investment environment? What are you doing? I would love to know.

Music: Trinity by Toby Tranter, Epidemic Sounds