There is always good news and bad news. However, we rarely tune in or log in to find good news. This tends to give us the impression that things are worse than they really are. And then you have ads harking how bad the economy is, how scary, how you need their information, products, and services to stay safe!
It is pretty disappointing to observe how those who benefit from scaring us behave.
This is one of the ways we earn our pay. Being the voice of reason. The markets are fine, trading is normal. Earnings season is upon us, and doing quite well. Corporations are surviving, albeit they need more trade jobs filled.
Short-term market movements are reacting to current news. It is short-lived. In the long term, they are meaningless. When we follow 5 and 10 year rolling periods, it smooths out the up-and-down jumps. We have occasional down markets and some bear markets. The strength of the stock markets and the economy is as strong as that of our citizens, our workers, and our companies, both large and small. We bet on that. Not what ads say.
The feature below also discusses the positive performance of global markets. I bet you didn’t hear about that!
To your Prosperity!
Aaron Wade, Kasey Claytor, Dawn Lopez & Kelsey Bartholomew
The Global Rally Many Investors Didn’t See Coming
July 17, 2025 — For the first time in over a decade, international equities have decisively outpaced U.S. stocks in the first half of 2025, marking a significant shift in global market dynamics. The MSCI All Country World Index ex USA has gained 17.3% year-to-date, outpacing the S&P 500’s 9.8% rise.
A World of Opportunity: Regional Market Spotlights
Germany — The Comeback of the Manufacturing Powerhouse
Germany’s DAX 40 is up 19% YTD, bolstered by a recovery in industrial exports and a green energy push that has attracted global capital. German automation firms and renewable energy leaders have driven much of this growth.
France — Tech and Luxury Lead the Charge
The CAC 40 gained 16%, powered by robust performance in luxury brands like LVMH and Hermès, alongside a vibrant tech sector centered around Paris’s startup ecosystem, now dubbed “Silicon Seine.”
Japan — Corporate Reform Unleashes Value
Japanese equities have attracted both domestic and foreign investors as corporate governance reforms deepen. Companies increasing dividends and share buybacks have propelled the Nikkei’s 22% surge.
Brazil — Commodities and Infrastructure Boom
Brazil’s Bovespa climbed 24%, driven by strong global demand for critical minerals and agricultural exports. Major infrastructure projects, backed by both government and foreign investors, have provided an additional boost.
India — The AI Supply Chain Winner
India’s Sensex hit new highs with a 21% increase, benefiting from its growing role in global AI hardware manufacturing and services. The government’s tech-forward economic policies continue to attract multinationals and venture capital.
Bottom Line
Markets remain unpredictable. While U.S. stocks have still performed historically well so far this year, 2025 is serving as a timely reminder of the importance of maintaining a diversified investment approach in an ever-changing market landscape.
Disclosure:
The views expressed herein are exclusively those of Efficient Advisors, LLC (‘EA’), and are not meant as investment advice and are subject to change. All charts and graphs are presented for informational and analytical purposes only. No chart or graph is intended to be used as a guide to investing. EA portfolios may contain specific securities that have been mentioned herein. EA makes no claim as to the suitability of these securities. Past performance is not a guarantee of future performance. Information contained herein is derived from sources we believe to be reliable, however, we do not represent that this information is complete or accurate and it should not be relied upon as such. All opinions expressed herein are subject to change without notice. This information is prepared for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. You should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. You should note that security values may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Investing in any security involves certain systematic risks including, but not limited to, market risk, interest-rate risk, inflation risk, and event risk. These risks are in addition to any unsystematic risks associated with particular investment styles or strategies. You cannot invest directly in an index.