"Some of the heightened returns seen from international stocks came from currency fluctuations, with the U.S. dollar weakening relative to a basket of global currencies. While I don't anticipate that U.S. dollar weakness will continue forever (there's a reason why the U.S. markets are considered the gold standard globally), it is true that the geopolitical environment has changed drastically in recent years. As such, investors who have been more broadly diversified with their holdings (from a geographic perspective) have outperformed."
"This company was formed out of a merger between Tim Horton's and Burger King roughly a decade ago, and has since included acquisitions of Popeye's and Firehouse Subs, among other banners. The company's resilient global franchise model and accelerating operational momentum hasn't yet translated into the kinds of returns bulls like myself have been hoping for. In fact, recent quarters have shown slight weakness, which I do expect to revert at some point in the future."
U.S. stocks led global markets for over a decade until 2025, when international stocks gained momentum. Currency fluctuations and a weaker U.S. dollar boosted international returns. Geopolitical changes altered the investment landscape, causing broadly diversified geographic holdings to outperform. A multi-year period where international diversification serves as a hedge is plausible. Three global companies are highlighted as potential additions, including Restaurant Brands (QSR). Restaurant Brands formed from a merger of Tim Horton's and Burger King and later added Popeye's and Firehouse Subs. The franchise model is resilient; operational momentum is accelerating but recent quarters have been weak. Trade-down in dining is expected to boost traffic and margins over time.
Read at 24/7 Wall St.
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