After a decade of lagging behind the
S&P 500
foreign markets have been on a roll, supercharged by China’s abandoning its zero-Covid policy and a warm European winter that has helped the eurozone avoid a recession despite the war in Ukraine.
The 14% gain in the iShares MSCI Eurozone exchange-traded fund (ticker: EZU) and the 13% increase in the
iShares MSCI China ETF
(MCHI) so far this year have beaten the S&P 500’s 7.7% rise.
Some strategists see a bigger shift at hand as some of the megacap U.S. tech stocks that have dominated markets over the last decade face increasing challenges. That could create more of a level playing field for foreign markets.