Monetary Matters with Jack Farley The Global Bull Market: Examining the Dramatic Outperformance of Global Stocks vs. the US | Jack & Max
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Jan 7, 2026 Explore the surprising outperformance of global stocks versus the U.S., with standout performances from South Korea and China. Delve into the dynamics of foreign capital flows and sector winners like tech and industrials. Hear insights on the speculative market, AI's impressive growth, and the concerning labor market divergence. The discussion also touches on potential risks for 2026, including AI valuations and geopolitical considerations, all while highlighting the evolving landscape of the global bull market.
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Record Flows But More Hedging
- Foreign investors still poured record capital into US markets in 2025 but increased their currency hedging.
- That hedging made ex-US markets outperform the US on a total return basis despite large US inflows.
Global Markets Outperformed The US
- The All Country World Index and many individual countries beat the S&P 500 in 2025.
- Emerging markets like South Korea and China dramatically outperformed, showing the bull market was global.
Country Leaders: Korea And China
- South Korea led with a nearly 95% return and China had many 100%+ winners.
- Most major European and developed markets also outpaced the US index.