Tim Seymour: International Markets Poised for Strong Performance in 2026

International Market Outperformance

• 💡 International markets, including Japan's Nikkei, the UK Footsie, and Germany's DAX, are expected to continue outperforming the S&P 500 in 2026.
• 📈 This trend is supported by a weaker dollar and a global economic environment where global growth is better than it has been in a long time.
• 🎯 Investors are advised that they may be underweight international exposure and should consider participating in these global opportunities.

Asian Market Dynamics

• 🚀 The Korean market, specifically the KOSPI, is seen as a trade that continues to have legs, with ETFs like EWY offering exposure.
• 🌏 Asian currencies may follow global trends due to a weaker dollar, potentially benefiting from international market momentum.

China's Tech Sector Opportunity

• 🇨🇳 Despite geopolitical headlines, China's tech companies present a real opportunity as the government is no longer actively suppressing them.
• 💡 There's potential for similar AI and tech trades that are working in the US to be found in China, with companies like Tencent and Alibaba being of interest.

Latin America's Potential

• ⚡ The industrial and precious metals trade is strongly linked to Latin America, with copper and gold being key commodities.
• 🇧🇷 Brazil is highlighted as an interesting market with potential to outperform, especially given political shifts.

Investment Rationale for Global Markets

• 💰 International markets trade at a discount compared to US markets, offering attractive valuations.
• 📊 Earnings revisions are higher for global companies, indicating positive fundamental momentum.
• 🔄 The current trend is seen as a mean reversion trade after years of international underperformance, suggesting it's not too late for investors to participate.