For years, betting on the U.S. stock market has been the right move. Large-cap technology companies have dominated global returns, artificial intelligence (AI) has fueled a historic rally, and investors who stayed close to home have generally been rewarded. As a result, many American portfolios have become increasingly concentrated in domestic equities, with international stocks making up only a small slice of overall allocations. That success, however, has created a new challenge, as overvaluations and other risks creep into the spotlight. Diversification may once again deserve a closer look.
One region stands out in particular: Asia and the broader Asia-Pacific (APAC) region.
Home to some of the world’s fastest-growing economies, globally competitive technology companies, expanding middle classes, and increasingly important AI infrastructure, APAC offers investors exposure to a very different set of opportunities than those found in the United States.
