Is international stock outperformance sustainable?

We examine the fundamental factors and the macro risks

Time to read: 2 min

2017 marked only the second time in the last eight years that international markets outperformed the US, with the MSCI All Country World Index (ACWI) ex-US returning 27.19%, and the S&P 500 Index returning 21.83%.1 So is this the beginning of a sustained shift in outperformance? On one hand, there is a list of risks facing international markets, from Brexit to a potential slowdown in China. But on the other hand, international companies have recently been trading at a substantial valuation discount compared with the US, and we have been seeing strong profit expansion.

What is the EQV landscape for international markets?


Taking tally of the global rally

2018 Outlook: International stocks turn a corner, but what do the fundamentals tell us?

Time to read: 3 min

As we look ahead to 2018, it’s important to first recognize how significant 2017 has been for international markets. This is the eighth year of a global bull market, but prior to 2017, international markets had trailed the US for four consecutive years — and for six of the last seven years.1

2017 has been the first year since 2010 of global synchronized earnings growth, and expectations are for this to continue in 2018. We’ve also seen a broad-based acceleration in global gross domestic product (GDP) growth, with stronger growth in the US, European Union, Japan, Asia and Latin America. In fact, for the first time since 2007,


International equity fundamentals show improvement

As our strategy turns 25, we discuss the keys to our EQV philosophy

This year marks the 25th anniversary of Invesco International Growth Fund. In that time, we’ve seen the performance pendulum swing widely across global regions and investment styles. But no matter the market conditions, our focus on EQV — Earnings, Quality and Valuation — has remained constant.

To kick off our 25th year, most international markets had strong performance in the first quarter, driven by an improving macroeconomic backdrop overseas and a weakening US dollar. Importantly, as we look at the markets through our EQV perspective, we have seen some encouraging changes: