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CONTRIBUTORS

Paweł Wróblewski, CFA

Portfolio Manager
ClearBridge Investments

After more than a decade of US market dominance, 2025 marked an important shift—international markets significantly outperformed the US for the first time in years

Paweł Wróblewski at breaks down three powerful macro drivers reshaping the global investment landscape: 

  • Sentiment Shift: US policy uncertainty and a weakening dollar are boosting international returns. 
  • Monetary Dynamics: Japan's rising rates may reverse decade-long yen carry trades, redirecting capital flows.
  • Fiscal Firepower: Europe (especially Germany) and Japan are ramping up hundreds of billions in stimulus spending on defense and energy security.

As the valuation gap between expensive US markets and attractive international stocks creates a compelling entry point, this is essential viewing for portfolio construction conversations in 2026. 

WHAT ARE THE RISKS?

All investments involve risks, including possible loss of principal.

Equity securities are subject to price fluctuation and possible loss of principal. 

International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets.

WF: 10914110

IMPORTANT LEGAL INFORMATION

This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. All investments involve risks, including possible loss of principal. There is no guarantee that a strategy will meet its objective. Performance may also be affected by currency fluctuations. Reduced liquidity may have a negative impact on the price of the assets. Currency fluctuations may affect the value of overseas investments. Where a strategy invests in emerging markets, the risks can be greater than in developed markets. Where a strategy invests in derivative instruments, this entails specific risks that may increase the risk profile of the strategy. Where a strategy invests in a specific sector or geographical area, the returns may be more volatile than a more diversified strategy.

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