International financial markets demonstrated a significant lead over the S&P 500 throughout 2025, marking a notable shift in global investment landscapes. The critical determinant for the continuation of this trend into 2026 appears to be the direction and strength of the US dollar. Investors are closely monitoring currency fluctuations as they prepare for the upcoming year, recognizing their profound impact on asset class performance.
A particularly striking development in 2025 was the Japanese Nikkei index finally surpassing its 1989 historical high, a milestone long awaited by market observers. This achievement signals renewed vigor in Japanese equities and has drawn considerable attention to the region’s economic prospects. Such an event underscores the dynamic nature of international markets and their potential for substantial returns.
New strategic investment positions were also established during 2025, including allocations to JFEAX, EMXC, and IBM. These additions reflect a diversified approach to capitalizing on emerging opportunities within both international and domestic sectors. While these holdings are not yet among the top ten, they represent active portfolio adjustments aimed at optimizing returns.
Furthermore, there is a discernible trend towards increasing exposure to specific companies and thematic investments. Boeing, Japanese Nikkei Exchange Traded Funds (ETFs), and Nike are examples of holdings where shares are continuously being accumulated. This reflects a bullish outlook on the aerospace industry, the continued growth potential of Japan’s economy as represented by its leading index, and the resilience and global appeal of major consumer brands.
Looking ahead, the interplay between global economic policies, geopolitical stability, and corporate earnings will shape the investment environment. The sustained strength in international equities relative to the S&P 500 suggests a broader reevaluation of growth drivers and value propositions beyond traditional US-centric portfolios. As the investment landscape evolves, adaptability and strategic diversification remain paramount for navigating future market conditions successfully.