US market dominance was extreme, hitting over 60% of global market cap while US GDP is only 25% of global. We were due for a swing. Dollar weakness last year was a major catalyst, making global opportunities attractive.

I was wrong to dismiss international markets. They levitated last year and are still flying this year. Deregulation in Europe and commodity benefits for emerging markets are drivers.

Yes, maybe almost a third of the returns in dollar terms were due to the weaker dollar. That weakness definitely juiced returns. Foreigners investing in the US last year hedged their dollar exposure to an extent I've not seen before.

No, I think the trend we saw last year and started in 2024 is going to continue. Many attractive stocks are outside the US, but there are also US value stocks. Tech companies have to sell their tech to the rest of us; integrating it can be good for other companies' earnings and stocks.

Exactly. Going from 8x to 12x earnings because things get less bad is a 50% return. We saw this in Hong Kong/China. Valuations don't matter until they do.