Why U.S. stocks are off to the worst start since 1995*

• US stocks are experiencing their worst start to the year since 1995, underperforming global markets.
• This underperformance is attributed to high US valuations (40% P/E premium), heavy tech concentration, and geopolitical risk.
• While global markets have seen returns driven by multiple expansion, the US maintains stronger fundamental earnings growth.
• Japan is strategically investing in US energy and critical minerals, partly influenced by tariff adjustments benefiting its auto industry.

US stocks are experiencing their worst start since 1995, lagging global markets due to high valuations, tech concentration, and geopolitical risk. While global markets have seen multiple expansion, the US maintains stronger fundamental earnings growth, leading to a debate on where investors should allocate capital.