2025 has seen a dramatic reversal of performance trends, with non-US equities significantly outperforming the US, resulting in significant shifts in asset flows. Key points International equities have reached a pivotal moment as geopolitics reshape markets. They have exhibited strong, consistent absolute performance over multiple time horizons. Optimism growing in Europe driven by fiscal expansion, corporate earnings, and positive economic data. Revitalization in Japan from a reversal of long-standing deflationary pressures, stagnant wage growth, and a renewed focus on shareholder value.