Yardeni sees global stocks outperforming U.S. on hopes conflict is nearing end

Yardeni Research says its “Go Global” strategy remains intact and that global (ex‑U.S.) equities could outperform the U.S. if a U.S.‑Iran peace deal materializes and oil prices fall. The firm notes the All Country World ex‑U.S. has already outperformed the U.S. MSCI recently and highlights emerging markets — led by South Korea and Taiwan — as standout performers, helped by AI-driven semiconductor strength. Yardeni points to a valuation advantage overseas (forward P/E ~13.7 vs. 21.3 in the U.S.) and calls Europe a compelling recovery trade, with Germany set to benefit most from lower energy costs. The view implies potential rotation from U.S. indices into international and EM equities if geopolitical risk eases and energy prices decline.