Global equities are not just the S&P 500
Five charts to start your day
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It is often said that the S&P 500 is a proxy for global equities. Given the size of US markets, that view is understandable. But this chart shows why it is only part of the story.
Both the S&P 500 and global equities move almost in lockstep through 2025. They fall together in early spring and recover steadily through the rest of the year. By the final quarter, global equities are modestly ahead. The outperformance is not dramatic, but it is persistent. This matters because the global index used here is already heavily tilted towards US stocks, with the US making up roughly 60% of the total.
That means this is not a case of the world beating America. It is a case of non-US equities quietly contributing rather than dragging on returns. Europe, Japan and parts of emerging markets do not lead the rally, but they have stop underperforming.
So the S&P 500 remains a powerful driver of global returns, but it is not the whole market. If global indices can edge ahead even with such a heavy US weighting, how much are investors underestimating the value of diversification today?
Source: Financial Times
What stands out across these charts is how often the real story sits between extremes. Not American dominance or decline, but a gradual rebalancing. Not de dollarisation or status quo, but careful diversification. Progress in markets tends to look like that, slow, uneven and easy to miss if you only watch the headlines.
I have four more charts that extend this theme and explore where financial power is quietly being redistributed, but they are for paid subscribers. Consider joining if you want the full edition and a clearer view of how the global system is actually evolving.
