International Growth Outlook: Necessity Sparks Opportunity
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ClearBridge Investments2.2K FollowersFollow5ShareSavePlay(11min)CommentsSummaryInternational equities outperformed the U.S. in 2025, driven by policy uncertainty in the U.S. and increased fiscal spending in Europe and Japan.Reshoring, defense spending, and AI innovation are key secular trends supporting non-U.S. growth, with structural, secular, and emerging growth opportunities identified.China's renewed innovation focus, especially in biopharmaceuticals and battery storage, presents transformational potential despite ongoing global friction.Valuations for international equities remain attractive versus U.S. peers, with best-in-class business models and innovation at more reasonable multiples. efired/iStock via Getty Images By Elisa Mazen Developed Markets Carry Positive Momentum into 2026 A long-awaited global equity leadership shift took hold in 2025 as policy uncertainty in the U.S. under the Trump administration spurred investors to look overseas forThis article was written byClearBridge Investments2.2K FollowersFollowClearBridge is a leading global asset manager committed to active management. Research-based stock selection guides our investment approach, with our strategies reflecting the highest-conviction ideas of our portfolio managers. We convey these ideas to investors on a frequent basis through investment commentaries and thought leadership and look forward to sharing the latest insights from our white papers, blog posts as well as videos and podcasts.Analyst’s Disclosure:I/we have a beneficial long position in the shares of ASML, SBGSY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.Past performance is no guarantee of future results. All opinions and data included in this commentary are as of the publication date and are subject to change. The opinions and views expressed herein are of the author and may differ from other portfolio managers or the firm as a whole, and are not intended to be a forecast of future events, a guarantee of future results or investment advice. This information should not be used as the sole basis to make any investment decision. The statistics have been obtained from sources believed to be reliable, but the accuracy and completeness of this information cannot be guaranteed. Neither ClearBridge Investments, LLC nor its information providers are responsible for any damages or losses arising from any use of this information. Benchmark sources: Standard & Poor's and Morgan Stanley Capital International. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Further distribution is prohibited. Performance source: Internal. Benchmark source:Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.