WSJ's Take On the Week Is It Time to Diversify Away From U.S. Stocks Into Global Markets?
20 snips
Nov 23, 2025 Luca Paolini, Chief Global Strategist at Pictet Asset Management, dives into the importance of U.S. investors looking beyond their borders. He presents the 'great convergence' thesis, predicting that economies like Germany and Japan will catch up with the U.S. Paolini also discusses the waning strength of the dollar, linked to risks of inflation and fiscal issues. He suggests that reallocating investments into non-U.S. equities and emerging markets can diversify portfolios effectively, making a case for balancing risk and seizing global growth opportunities.
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AI Earnings Recenter Market Sentiment
- Nvidia's earnings helped restore confidence in the AI trade and calmed some market fears.
- Telis Demos and Hannah Erin Lang note the AI-driven rally affects broad markets beyond pure tech names.
Wealth Effect Fuels Uneven Consumer Spending
- The stock-market 'wealth effect' is boosting spending for high-income households while many middle- and working-class Americans feel different economic realities.
- The hosts link asset gains concentrated in wealthy portfolios to uneven consumer spending patterns this year.
Diversify Beyond U.S. AI Concentration
- Consider diversifying outside the U.S. to reduce concentration in AI-heavy U.S. indices.
- Telis Demos highlights MSCI World ex-US for exposure to sectors like health care, banks and energy.