Home / Business and Economy / US Stocks Lag: Overseas Markets Shine Bright in 2025
US Stocks Lag: Overseas Markets Shine Bright in 2025
11 Dec
Summary
- Non-U.S. markets significantly outperformed the S&P 500 in 2025.
- Home-country bias caused many investors to miss these global gains.
- Warren Buffett's Berkshire Hathaway is selling U.S. stocks, holding cash.
As of early December 2025, many investors have been surprised by their underperformance in U.S. stocks, which have risen 17% year-to-date. This is because major Western markets outside the U.S. have offered substantially higher returns, with a median gain of 29%.
This divergence is largely attributed to 'home-country bias,' a common tendency for investors to favor domestic assets, leading to a lack of diversification and missed opportunities. Countries like Australia have seen gains of 11%, while many others have significantly outpaced U.S. performance.
Further fueling concerns about U.S. stock valuations, Warren Buffett's Berkshire Hathaway has been actively selling U.S. equities for twelve consecutive quarters. The conglomerate now holds a record $381 billion in cash, suggesting a cautious outlook on the domestic market.
