Our global equity team's strategy work and quantitative insights suggest the conditions underpinning more than a decade of non-U.S. equity underperformance may be starting to shift. We see three drivers: (1) tariffs are weighing on U.S. household income and may curb consumption; (2) fiscal and economic policy abroad is becoming more proactive; and (3) macro conditions are reshaping relative growth prospects. As growth differentials narrow, we see more compelling valuations—and potential capital flows—outside the United States.
