Quote:
Originally Posted by FBSMLUVR
Many of you will recall that I predicted back around February/March (no I’m not gonna go back and search for my post) that the stock market (Dow) would be closer to 50K than 45K by year end.
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Yeah 2025 was a good year, Dow closed last friday
48,382.39 but my investments did better under Biden.
US stocks had a remarkable 2025. But international markets did much better
US stocks had a stellar 2025, but global markets stole the show.
A major index tracking stocks outside the US, the MSCI All Country World ex-USA, gained 29.2% in 2025, handily outpacing the S&P 500’s gain of 16.39%.
The artificial intelligence boom has benefited markets in Asia, where tech companies and chipmakers have seen surges in demand. In Europe, markets received a boost from plans for government spending on defense and improved prospects for economic growth.
A weaker US dollar also provided a tailwind for international stocks. When the dollar weakens and other currencies strengthen, investments denominated in those currencies become more valuable when converted back into dollars.
The US dollar index, which measures the dollar’s strength against six major currencies, fell by roughly 9.4% in 2025, its worst year since 2017.
Heading into 2025, US stock valuations were already relatively expensive compared to the rest of the world, creating an incentive for investors to look for returns in different markets.