Investing Beyond the US: The Equity Market Opportunity

International equities offer a broader and more balanced opportunity set than the US, with less concentration in mega-cap names and greater exposure to sectors like financials and industrials.

Europe is beginning to deploy fiscal support into infrastructure and defense, while Japan may benefit from stronger earnings growth and better shareholder returns as governance reforms take hold. These markets also remain less efficiently priced, which can create opportunities for active investors who can uncover mispriced companies.

Valuations outside the US still look attractive, with EAFE trading at a meaningful discount to the S&P 500. Higher dividend yields add another source of return and can help provide some stability when markets become volatile.