Global Value Outlook: International value can shine even brighter in 2026

As 2026 approaches, global investors are increasingly eyeing opportunities outside the United States, where value investing has begun to outshine growth investments driven by AI enthusiasm. In Europe and Japan, fiscal stimuli and policy shifts are bolstering value industries like banks and infrastructure, offering promising returns amidst political uncertainties. Germany’s extensive fiscal initiatives aim to boost GDP growth in the eurozone while Japan's leadership focuses on spurring economic activity domestically.

In contrast, US markets may present challenges for value investors unless AI-driven spending falters; however, individual opportunities exist among undervalued companies with solid fundamentals. The potential for mergers could further enhance prospects in smaller-cap US stocks as interest rates and regulatory conditions improve.

Despite a generally positive outlook for value investments globally, risks such as fluctuating interest rates and potential setbacks in AI-related growth necessitate cautious optimism. Investors should remain vigilant of these hazards while focusing on strategic stock selection to capitalize on valuation discounts that offer long-term growth potential—particularly within international markets.