Capital Ideas Podcast U.S. versus non-US equities: Is the tide turning?
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Oct 30, 2025 Join portfolio managers Chris Thomsen and Diana Wagner as they dive into the shifting dynamics of global equities. Chris discusses the promising outlook for non-U.S. markets, highlighting valuation gaps and structural catalysts in Europe and Asia. Diana shares insights on the U.S. landscape, emphasizing a broadening market beyond tech and the investment potential in AI and industrials. The duo explores strategies for adapting portfolios in the face of changing global trends, making this discussion essential for savvy investors.
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Valuation Gap Signals International Opportunity
- International equities are materially cheaper than the U.S. with a 20-year wide PE spread.
- A smaller U.S. weight in the global index historically suggests room for international revaluation.
Policy Catalysts Are Changing Market Dynamics
- Policy moves in Europe, Asia and India are creating active catalysts beyond valuation differences.
- Those actions plus a weaker dollar and thematic research trips are producing fresh international ideas.
Build Ballast And Invest With Conviction
- Use deep, long-term research to act decisively during volatile corrections.
- Hold ballast like telecoms, utilities and tobacco to manage portfolio volatility and reallocate quickly.