After international equities outperformed the U.S. in 2025, this year has been another reminder that market leadership rarely stays in one place.
Through the first half of 2026, Emerging Markets have led all major equity regions, followed by the U.S., with Developed International equities not far behind.
These shifts are typically driven by a wide range of factors, including investor sentiment, relative valuations, corporate earnings, monetary policy, geopolitical developments, economic growth, and currency movements.
Market dynamics and economic forces are constantly evolving and often difficult to predict, which means market leadership can change quickly and with little warning.
Although concentrating in a single region may seem compelling after a period of strong performance, it assumes that leadership will continue uninterrupted.
Rather than attempting to predict tomorrow’s leader, a globally diversified portfolio may allow investors to participate wherever opportunities emerge and help to build a more resilient portfolio over the long term.
Regional Equity Performance in 2026
After international equities outperformed the U.S. in 2025, this year has been another reminder that market leadership rarely stays in one place.
Through the first half of 2026, Emerging Markets have led all major equity regions, followed by the U.S., with Developed International equities not far behind.
These shifts are typically driven by a wide range of factors, including investor sentiment, relative valuations, corporate earnings, monetary policy, geopolitical developments, economic growth, and currency movements.
Market dynamics and economic forces are constantly evolving and often difficult to predict, which means market leadership can change quickly and with little warning.
Although concentrating in a single region may seem compelling after a period of strong performance, it assumes that leadership will continue uninterrupted.
Rather than attempting to predict tomorrow’s leader, a globally diversified portfolio may allow investors to participate wherever opportunities emerge and help to build a more resilient portfolio over the long term.