The U.S. Stock Market Is Underperforming the Rest of the World. It Shouldn’t Last.

While the best returns in the stock market have come from outside the U.S. over the past year, several indicators show that the U.S. market should soon start to take the lead.

In the twelve months through Monday’s close, the S&P 500 had dropped 1.6 percentage points more than the MSCI All-Country ex-US Index, meaning the rest-of-the-world market benchmark had a less horrendous year. But as of early Tuesday afternoon, that outperformance had narrowed to practically nothing.