However great the US stock market, is not the only place to negotiate actions. Markets in Europe, Asia and Latin America have been exceeding the US market in 2025. The Dax index, which tracks 40 of Germany’s most important actions, increased almost 15 percent during the year, led by Rheinmetall, the largest ammunition manufacturer in Europe, with a profit, in 2025 alone, of 113 percent. Germany is praying, a consequence of President Trump’s first foreign policy in the United States, and a large anticipated increase in military spending is stimulating European stock markets.
In the United States, the tariff policy of President Trump, along with his declared will to cause a recession if that is necessary to achieve what he sees as a greater good, has unstable companies, investors and many economists. While few predict a domestic recession at this time, the chances of one have increased due to uncertainty Irradiando from Washington.
“The American economy began 2025 working well, with strong growth, low and stable unemployment, and moderating inflation and interest rates,” said Mark Zandi, chief economist of Moody’s Analytics, in a note to customers last week. “But now, uncertainty and anguish about a growing global commercial war and great changes in other economic policies are doing significant economic damage, and recession risks are increasing.”
Great technology and everything else
For investors, these sudden problems in the United States highlight the benefits of diversification. The strategy is far from perfect: it will not provide the best possible yields at a given time, but it can protect it from some of the consequences of recessions in markets or discrete values.
Consider the total yield, including dividends and interests, of some kinds of important assets so far in 2025:
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The General Securities Market of the United States, represented by the Total Securities Market Index of Dow Jones US (once known as Wilshire 5000): 3.4 percent.
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The world stock markets outside the United States, as captured by the MSCI ACWI Ex USA index: 6.5 percent more.
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National investment grade bonds of the United States, represented by the United States aggregate bond index of the United States: 2 percent more.
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Global investment grade bonds, represented by Bloomberg’s global aggregate Index: UP 2.1 percent.
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MONETARY MARKET FUNDS AND TREASURING INVENTIONS, FOR CASH HUDGETS, as captured by the Bloomberg US Treasury Invoices Index: 1 percent more.
What this tells us is that most of the world’s key financial markets have been thriving, while the total stock market of the United States has stagnated. And even within that US market, it is paid to be diversified. While large technological companies have been affected, most other actions have been their own. Consider two funds quoted in the stock market. The magnificent ETF of Roundhill Magnificent is isolated the performance of seven highs of American technology of 2023 and 2024: Meta, Microsoft, Amazon, Apple, Nvidia, Alphabet and Tesla. It has decreased 12.3 percent this year. On the contrary, the ETF of great ex-Mag 7 challenge eliminates the magnificent seven actions, while providing exposure to the other large companies in the US market. It rose 1.1 percent.
