During Q1 of 2025, a large spread developed separating the returns of US stock vs. International Developed stocks (Western Europe, Japan, Canada, Australia). This spread was to the advantage of international stocks, which is a reversal of most quarters in recent memory where US stocks outperformed other markets. As of March 31, 2025, the US stock market average was down -4.72% while International Develops stocks were up +6.20%. The spread between the two being 10.92% in a single quarter. US bonds also performed well, providing 2.78% returns for a single quarter, despite many who expected interest rates to increase and bonds to weaken. While do not know if this will continue, this particular quarter has rewarded investors who did not give up on international diversification.
