summarize: wsj.com
Summary of the WSJ article: "Wall Street’s Hunt for Cheaper Stocks Goes Global"
After years of heavy concentration on large U.S. companies (often seen as the "only game in town"), investors and money managers are shifting capital toward international and non-U.S. markets. This marks a notable reversal from earlier sentiment, such as last spring's "Sell America" trend—now the hot trade is "buy everywhere else."
Key drivers of this shift include:
- High valuations in the U.S. stock market, making domestic stocks appear expensive.
- A weakening U.S. dollar, which enhances the appeal of foreign assets.
Investors are increasingly betting that America's long-standing outperformance and wide lead over global markets will narrow or shrink. This is fueling inflows into international equities viewed as relatively cheaper.
A quote from Keith Lerner, chief investment officer at Truist Advisory Services: "Right now, we're in a global bull market."
The article highlights a broader perceptual change among money managers, with capital rotating away from outsized U.S. bets toward more diversified global opportunities.
(Note: The full article is behind a WSJ paywall, so this summary draws from the publicly available excerpts, deck, and consistent details across financial news references as of February 10, 2026.)
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Top international stock picks
Here are some of the top international (non-U.S.) stock picks highlighted by analysts, research firms, and market outlooks as of early February 2026. This aligns with the ongoing rotation toward cheaper global equities, driven by U.S. valuations, a softer dollar, and strength in regions like Europe, Asia, and emerging markets.
International stocks (ex-U.S.) have continued outperforming U.S. shares into 2026, with themes like AI-enabling tech (e.g., semiconductors), consumer staples, healthcare, and commodities playing key roles. Note that "international" typically means non-U.S. companies, often accessible via ADRs for U.S./Canadian investors.
Key Individual Stock Picks From recent Morningstar analysis and other sources focusing on attractive valuations and long-term potential:
- SAP (Germany, tech/enterprise software) — Highlighted as a strong European tech play with solid growth prospects in cloud and AI-related services.
- Diageo (UK, consumer defensive — spirits like Johnnie Walker, Guinness) — Favored for its defensive qualities, global brand strength, and reasonable pricing in a volatile market.
- GSK (UK, healthcare/pharma) — Noted for its pipeline in vaccines and treatments, offering value in the defensive healthcare sector.
Other frequently mentioned strong international names:
- ASML Holding (Netherlands, semiconductor equipment) — Critical to global chip production (especially for AI), with strong performance and demand tailwinds.
- Taiwan Semiconductor Manufacturing (TSM) (Taiwan, semiconductors) — A leader in advanced chip fabrication, benefiting hugely from AI demand; often cited in top global (including international) lists.
- Novo Nordisk (Denmark, healthcare — e.g., Ozempic/Wegovy) — Dominant in diabetes and obesity treatments, with robust growth.
- MercadoLibre (Argentina/Latin America, e-commerce/fintech) — Seen as a high-growth "Amazon of Latin America," with rebound potential.
- European banks and industrials (e.g., Barclays, Santander) — Gaining from deregulation, lower rates, and dividends.
- Commodity-linked plays in Latin America (e.g., mining in Chile/Peru via ETFs like ILF) — Boosted by metals like copper and gold.
Broader Themes and ETF Recommendations For diversified exposure rather than single stocks:
- Europe remains attractive after 2025 outperformance, with value in tech, consumer, and banks.
- Japan — Corporate reforms driving gains in names like Hitachi or Recruit Holdings.
- Emerging markets/Latin America — Leading regional performance in 2026 so far, tied to commodities and recovery stories.
- Top international ETFs often recommended: Vanguard Total International Stock ETF (VXUS), iShares Latin America 40 ETF (ILF), Vanguard FTSE Pacific ETF (VPL), or JPMorgan BetaBuilders Europe ETF (BBEU).
These picks reflect a consensus view that non-U.S. markets offer better value and diversification potential right now, though risks include currency fluctuations, geopolitics, and regional economic shifts. Always consider your risk tolerance, do your own due diligence, and consult a financial advisor—past performance isn't indicative of future results. If you're focusing on a specific region or sector, let me know for more tailored suggestions! |
