Global Equities: Look Beyond the AI Trade

Cooling inflation and resilient growth are broadening the investment case beyond U.S. technology, with non-U.S. equities offering competitive performance and more diversified earnings drivers. 

• MSCI ACWI ex-USA gained 15.5% YTD through 14 August, ahead of the S&P 500 at 13.7%, while trading at a valuation discount. 
• Nearly 60% of projected emerging-market earnings growth depends on AI-linked capex and semiconductor demand, highlighting concentration risk. 
• In contrast, around 77% of projected eurozone earnings growth is tied to domestic resilience, defense, infrastructure and power-grid investment, while Japan benefits from financials, automation and rising real wages. 

Explore the full commentary for the regional earnings drivers and portfolio implications.