Some investors have used the domination of American stocks Against the rest of the world makes a superb pivot Towards international actions, fearing that American assets were able to take more risks in the context of commercial tensions at climbing initiated by the president Donald Trump.
The S&P 500 has flowed more than 6% since Trump announced its price plan for the first time, while the DOW and the NASDAQ each dropped by more than 7%.
There was a solid argument to use American actions and adopt a more global portfolio even before the recent volatility, said Christine Benz, director of personal finances and the planning of Morningstar's retirement.
“But I think the case for international diversification is even greater (now), given recent developments,” she said.
Jacob Manoukian, head of the American investment strategy at JP Morgan Private Bank, offered a similar evaluation. “Global diversification seems to be a cautious strategy,” he wrote in a research note Monday.
The United States has made the world beat by “size margin”
Some experts, however, do not think that investors should be so quick to pour American shares and pursue returns abroad.
The United States is still “a quality market that looks like a good deal,” said Paul Christopher, responsible for the world investment strategy at the Wells Fargo Investment Institute.
American actions have been survived the world for years in 2025.
THE S&P 500 The index had an average annual return of 11.9% from mid-2008 to 2024, beating the yields of developed countries by a “important margin”, according to To JP Morgan Private Bank analysts.
THE MSCI EAFE The index – which follows stock market yields on the developed markets outside the United States and Canada – increased by 3.6% per year over the same period, on average, they wrote.
However, the story is different this year, the experts say.
“In a surprising turn, the American equity market has just given investors a right recall on the reasons why diversification is important”, analysts of JP Morgan Private Bank wrote. “Although American outperformances have been a familiar characteristic of the world's stock markets since mid-2008, a change is possible.”
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Trump administration pricing policy and an escalation trade war China has raised concerns about the growth of the American economy.
The American markets have been under pressure since the White House announced for the first time the specific prices in the country on April 2. Trump has imposed prices on many nations, especially A 145% direct debit on imports from China.
Since Thursday morning, the S&P 500 was down approximately 10% since the start of the year, while the Nasdaq Composite fell more than 16% in 2025. Industrial average Dow Jones had lost almost 8%. Alternatively, the EAFE increased by around 7%.
Are we ills of exceptionalism?
The net sale on the American markets has raised doubts as to whether the American assets “are also attractive for foreigners now that they have been and, perhaps accordingly, if” the equity market) could be in the process of exit “, wrote Economics market analysts on Thursday.
At the same time, the increase in global trade tensions has wreaked havoc on the bond marketthreatening to shake the confidence of the owners of the American debt. The US dollar has also weakened, approaching a one -year -old Thursday morning.
It is unusual that American shares, bonds and the dollar fall at the same time, analysts said.
Former secretary of the Treasury Janet Yellen said on Monday that President Donald Trump's prices made more difficult for Americans to find comfort in the American financial system.
“It really creates an environment in which households and companies feel paralyzed by uncertainty about what will happen,” Yellen at CNBC told an “Squawk Box” interview. “It makes planning almost impossible.”
American fire had already “burned”
A merchant works on the New York Stock Exchange prosecution at the opening of the bell in New York on April 17, 2025.
Timothy A. Clary | AFP | Getty images
That said, international and American stock market yields tend to reflect and circulate in cycles, each showing multi -year periods of force and relative weakness.
Since 1975, US stock market yields have outperformed those of international shares for expanses of about eight years, according to a analysis By Hartford Funds until 2024. Next, American actions ceded the mantle to international actions, he said.
Based on history, non-American actions are late to recover first place: the United States is currently at 13.8 years in the current actions outperformance cycle, according to the analysis of Hartford funds.
US markets had already shown weakness before the year in the midst of concerns about the health of the economy and that “Air came out of the” big-tech “” actions, according to capital analysts Economics.
“In this regard, the” Liberation Day “- which accentuated these movements- only added fuel to a fire that had already burned,” they wrote.
Advisers: “Prepare carefully here”
A good starting point for investors would be to reflect a global action fund such as the Global Fund Fund for the Vanguard Total Stock Exchange (Vermont), said Benz de Morningstar. This fund hold About 63% of American shares and 37% in non -American shares.
It may be judicious to reduce exposure to international stocks as individual investors are approaching retirement, she said, reducing volatility from fluctuations in exchange rates.
“Part of our basic models for customers have always had an international exhibition, it is traditionally part of any risk adjusted at risk”, “ said the certified financial planner Douglas Bonearth, president of Bone Fide Wealth in New York, conversations he has with his customers.
A financial advisor or businessmen meeting to discuss financial figures. They discuss financial graphics and graphics on a laptop. Rear view to sit in an office and discuss the performance
Courtneyk | E + | Getty images
Even if these asset classes have not worked as well in recent years, “they have done a fairly good job here to help reduce the weight of this pricing volatility,” said Bonearth, member of the CNBC financial advisers council.
However, Bonearth warns investors against sudden blows to add non -American actions to their wallets.
“If you are thinking of making changes now, be careful,” he said. “Do you want to loss for American actions to get an international exhibition? You want to walk carefully here,” he said. “You continue or timing? You generally don't want to do these things.”
However, this can be the right time to check your investments to ensure that you are always assigned correctly and that you rebalance if necessary, he added. “By rebalancing, you can turn from less risky assets in shares, by strategically buying the decline.”
There have been very few times in history when customers have asked to increase their investments abroad “, which occurs now,” said CFP Barry Glassman, founder and president of Glassman wealth services.
“Since the actions and currencies surpass the American clues, it is not surprising that there is greater interest in foreign actions today,” said Glassman, who is also a member of the CNBC advisor's advice.
“Even in the past, when American actions have fallen, the dollar gains have helped to compensate for part of the losses. In the past two weeks, this has not been the case,” he said.
Glassman said that he maintains a two -thirds ratio to a third of American shares with foreign stock funds in the portfolios he manages.
“We are making no movement now,” he said. “The measures for us have been taken over time to maintain what we consider to be the appropriate foreign allowance.”
