International equities extend outperformance over US stocks

International stocks have expanded their outperformance relative to US equities during the first half of 2026. This trend follows a significant period of outperformance in the previous year, marking the first time since the 2008–2009 global financial crisis that non-US stocks have outperformed US markets over several consecutive years.

Opportunities in non-US markets include diverse regional exposures, varying political frameworks, and sectors such as European banking, which is seeing its highest profitability in over a decade. Other areas of interest include defense companies benefiting from increased military spending, technology providers central to artificial intelligence infrastructure, and certain luxury goods companies.