Global and international markets show strength not seen in 17 years.
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As we have covered extensively, international equities have been on one of their best runs in years so far in 2025. This brings up questions of how much is left in the tank for such a strong move. On the Asset Class Group Scores page, the All Global and International Diversified group has a score direction of 1.93 which is its highest since September 2020. Historically, we’ve seen the score direction stall out at these levels which is not necessarily a negative sign moving forward. However, it does suggest that the ride international equities have been on may be subject to slowdown over the next few months.
While international equities may cool off in the short-term, the All Global and International Diversified group’s average score has hit its highest level in over 17 years. The last period when the group held around and above a score of 4.0 was from November 2004 until January 2008. Over this period, the iShares MSCI ACWI ex US ETF (ACWX) returned 60.66% while the S&P 500 Index (SPX) gained 21.94%. International equities may need a cooling off period, however the long-term technical readings are the most positive they have been in almost two decades. If the average score for the All Global and International Diversified group remains in strong or acceptable territory, then a pullback should be a welcome sight for investors looking to gain exposure to a strong area of the market.
