Why Investors are Looking Beyond the U.S.

Summary

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WSJ What’s News — "Why Investors are Looking Beyond the U.S."

Date: February 11, 2026
Host: Luke Vargas
Guests: Hannah Aaron Lang (Financial Markets Reporter), Dov Lieber (Middle East Correspondent), Ben Katz (Aviation Reporter), John McCormick (National Politics Reporter)

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Episode Overview

The episode centers on a major shift in global investing: U.S. investors are increasingly looking abroad after a long period of outsized bets on American companies. The show explores the reasons behind this trend, international market outperformance, and what it might mean for the U.S. and global economies. Alongside this, the episode covers key global headlines including developments between the U.S. and Iran, Cuba’s worsening fuel crisis, a mass shooting in Canada, and American political updates.

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Key Discussion Points and Insights

1. International Stock Markets Outperforming the U.S.

(Main discussion starts at 08:12)

• Shift in Investment Trends:
  After years of U.S. stock outperformance, international indexes are now outpacing the S&P 500.

  • Korea’s Kospi: Strong gains year-to-date
  • Japan’s Nikkei: Up 14.5%
  • Europe's Stoxx 600: Up nearly 5%
  • S&P 500: Up just under 2%
    (08:27)

• Historical Context:
  For much of the last decade, it seemed “investing in domestic companies was really the only way that US Investors could win.”
  (08:27, Hannah Aaron Lang)

2. Reasons Behind the New Global Focus

(09:14 – 10:37)

• Weakening U.S. Dollar:

  • The dollar has slid about 10% from its 2022 highs.
  • A weaker dollar “juices returns on foreign stocks by boosting the value of those companies’ earnings relative to American companies.”
    (09:17, Hannah Aaron Lang)

• Global Economic Developments:

  • Europe: Increased defense spending to strengthen capabilities.
  • Japan: Upcoming government stimulus.
  • These efforts are driving economic and market growth abroad.

• Concentration Risk in U.S. Markets:

  • U.S. markets are “dominated by just a handful of companies, many… closely linked to the artificial intelligence buildout.”
  • Investors are “worried about what they call concentration risk.” (09:17)

• Diversification Trend:
  “This theme of diversification more broadly is a big one among investors this year.”
  (09:17, Hannah Aaron Lang)

3. The “Sell America” Trade – Context and Clarification

(10:37 – 11:34)

• The broad selling of U.S. assets around April 2025 became known as the “Sell America trade.”
• Current moves “aren’t about abandoning America entirely”—it's a rebalancing, not a wholesale exit:

  “This is not a case where America’s lead on the rest of the globe will completely disappear. Most of these fund managers still believe that the US will lead global equity markets higher for the next several years, just perhaps by not as wide a margin as we’ve seen over much of the past decade.”
  (11:08, Hannah Aaron Lang)

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Other Notable News Headlines and Insights

U.S. & Iran Developments

(01:02 – 02:20)

• U.S. considers seizing tankers with Iranian oil, weighing pressure vs. potential retaliation and oil price spikes.
• Main focus of Trump–Netanyahu talks is concern over a possible U.S.–Iran nuclear deal:

  “Should the Trump administration strike a deal with Iran, it could actually give Iran the sanctions relief it needs to improve its economy… bring it back from the brink just when Israel sees its greatest nemesis down and on the mat.”
  (01:48, Dov Lieber)

Cuba’s Fuel Crisis

(03:19 – 04:04)

• U.S. oil blockade strangles Cuba, with flights canceled, work furloughs, and severe rationing.

  “We’ve also seen disruption in Cuba itself, tourists being shepherded between different hotels to try and avoid some of the blackouts and the electricity cuts.”
  (03:54, Ben Katz)

Mass Shooting in Canada

(04:04 – 04:47)

• Nine killed and 25 wounded in BC; worst mass killing in Canada in 3+ years.
• Shooter was female, reportedly died by suicide.

Other Market News

• Warner Bros. Discovery faces activist push to favor a Paramount Skydance deal over Netflix (05:42).
• Mattel shares plunge 30% after weak holiday sales, outlining shift to entertainment and gaming.
• EU approves Google’s $32B acquisition of Wiz.

U.S. Political Update: Age and Term Limits in Congress

(12:23 – 13:03)

• Senator Susan Collins (R-Maine) runs for reelection at 73; Democratic nominee options are older as well.
• Growing national debate on age and term limits for elected officials:

  “Rahm Emanuel…recently called for a mandatory retirement age of 75 for presidents, cabinet officials, members of Congress and federal judges. The idea of term limits or an age limit is popular among voters. A YouGov poll…showed that 73% of American adults think there should be a maximum age for the presidency…”
  (12:47, John McCormick)

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Memorable Quotes

• “It really seemed like investing in domestic companies was really the only way that US Investors could win.”
  – Hannah Aaron Lang (08:27)

• “This is not a case where America’s lead on the rest of the globe will completely disappear. Most of these fund managers still believe that the US will lead global equity markets higher…just perhaps by not as wide a margin.”
  – Hannah Aaron Lang (11:08)

• “If the AI narrative hits a wall, there’s no question in my mind that the US Economy starts to go perilously close to recession.”
  – Luke Vargas (13:38)

• “The idea of term limits or an age limit is popular among voters. A YouGov poll…showed that 73% of American adults think there should be a maximum age for the presidency…”
  – John McCormick (12:47)

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Timestamps for Important Segments

• 00:32: Headlines: FAA El Paso, Warner Bros.-Netflix, Investors look abroad
• 01:02 – 02:20: U.S.–Iran tanker seizures and Mideast diplomacy
• 03:19 – 04:04: Cuba fuel crisis impacts aviation, economy, and tourism
• 04:04 – 04:47: Canada mass shooting
• 08:12 – 11:34: Main Segment – Why investors are looking beyond the U.S.
  • 08:27: Global indexes outperform S&P 500
  • 09:17: Factors driving global investing (weak dollar, stimulus, concentration risk)
  • 10:37: “Sell America” trade explained
• 12:23 – 13:03: U.S. politics: Susan Collins, age & term limits
• 13:38: Financial risk if “AI narrative” falters

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Tone and Style

The speakers maintain an informed, analytical, and brisk tone, focused on distilling complex financial and geopolitical trends into clear takeaways for investors and general audiences alike.

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This episode offers a broad yet sharp look at the changing tides in global investing, why American dominance is being re-examined, and situates these market shifts within the broader context of politics, policy, and global crises.

Transcript

[Morgan Stanley Host]

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[Luke Vargas]

The FAA halts flights to and from El Paso, Texas for security reasons. Plus the Warner drama rolls on as activist Ancora pushes for Paramount's deal over Netflix. And investors look abroad as US Stocks underperform the rest of the world.

[Hannah Aaron Lang]

It really seemed like investing in domestic companies was really the only way that US Investors could win. And though we haven't seen America give up its lead on other countries across the world, lots of global index outperforming the S&P 500 this year.

[Luke Vargas]

It's Wednesday, February 11th. I'm Luke Vargas for the Wall Street Journal, and here is the AM edition of what's news, the top headlines and business stories moving your world Today, The US Is considering seizing more tankers carrying Iranian oil in a potential tightening of the screws on the regime in Tehran. However, we report that the Trump administration has thus far held off on the move, concerned about provoking a retaliation or triggering a surge in oil prices. Middle east correspondent Dov Lieber said Iran will be the main focus of talks today between Israeli Prime Minister Benjamin Netanyahu and President Trump in Washington as concern grows within Israel that the US And Iran could agree to a nuclear deal that's not in its interests.

[Dov Lieber]

One of Netanyahu's main fears is that should the Trump administration strike a deal with Iran, it could actually give Iran the sanctions relief it needs to improve its economy. It could give the regime legitimacy and bring it back from the brink just when Israel sees its greatest nemesis down and on the mat. Israel's positions regarding the talks in Iran are different from what we understand to be the opinions of the rest of the region who want to see Iran weakened. But they don't necessarily want to see the United States go to war with Iran, the results of which are a mystery.

[Luke Vargas]

Trump has threatened to use force against Iran should diplomatic talks fail. The Federal Aviation Administration is halting all flights to and from El Paso, Texas for 10 days for special security reasons. The FAA said the restrictions would apply to Commerc cargo and general aviation and told travelers to contact their airlines for more information. No specific explanation was provided for the restrictions. But an earlier notice cited drone activity over El Paso. The FAA and El Paso International Airport didn't immediately respond to a request for comment. Meanwhile, daily life in Cuba is grinding to a halt as a US Oil blockade designed to cut the country off from Venezuelan support takes its toll. Cuban authorities have begun furloughing state workers send home from school early and rationing dwindling fuel supplies, which Journal aviation reporter Ben Katz said includes putting out a notice saying that aircraft visiting the island can't refuel there.

[Ben Katz]

What we've seen since then is airlines canceling flights to and from the island. Some of the short haul flights are still flying where an aircraft can carry enough fuel to be able to make it to Cuba and then back. But we're seeing a lot of airlines, especially from Europe and from Canada, rejig their schedules and try and figure out how they can maintain, if at all, their flights, those long haul flights, especially from Europe, from Canada. Canada is one of the biggest sources of tourism for Cuba. You know that poses a very big hit on the Cuban economy. We also know that some airlines are sending their aircraft empty just to repatriate some tourists who would like to get off the island. And we've also seen disruption in Cuba itself, tourists being shepherded between different hotels to try and avoid some of the blackouts and the electricity cuts.

[Luke Vargas]

Cuba's last oil delivery on January 9 was from Mexico, which has since halted supplies under US press. In Canada, nine people have been killed and a further 25 injured in a mass shooting in British Columbia. Part of the shooting happened at a secondary school, and police believe that two additional victims found dead in a house were connected to the same incident. Ken Floyd of the Royal Canadian Mounted Police said the suspected shooter was a woman wearing a dress. As part of the initial response, officers entered the school to locate the source of the threat.

[Telis Demos]

During their search, police located multiple victims.

[Luke Vargas]

The individual believed to be the shooter was also found deceased from what appears.

[Telis Demos]

To be a self inflicted injury.

[Luke Vargas]

The shooting marks the worst mass killing in Canada in more than three years. In Washington, House lawmakers have rejected an attempt by GOP leader Mike Johnson to block challenges to President Trump's tariff policies. Democrats were joined by several Republicans who've criticized Trump's aggressive use of tariffs and their questionable legal underpinning. A series of high profile votes could now begin as soon as today, including a Democratic challenge to Trump's tariffs on Canada. In the latest twist in the rival takeover bids for Warner Bros. Discovery, activist investor Ancora holdings says it'll push the Hollywood studio to walk away from the $72 billion deal it signed with Netflix. Ancora has built a roughly $200 million stake in Warner and yesterday emailed Warner CEO David Zaslav to say it's considering a proxy fight if Warner's board doesn't negot best deal for shareholders to sell to Paramount Skydance instead. Warner has consistently rebuffed Paramount's $78 billion offer, arguing that the Netflix deal has greater value, more secure financing and a clear path to regulatory approval. Just under 125 million people tuned in to watch Sunday's super bowl across Comcast's NBC and Telemundo networks and Peacock streaming service that is down slightly from last year's record 126 million viewers who watched on Fox and T. This year's viewership peaked at 138 million viewers just ahead of Bad Bunny's halftime show. Shares of toymaker Mattel are plunging more than 30% after reporting that a hoped for holiday sales surge failed to materialize. Mattel is banking its 2026 fortunes on a pivot into entertainment and digital content, with plans to release two movies and expand into mobile gaming. France's Total Energies is trimming its quarterly share buyback as global energy giants contend with weaker oil prices. BP yesterday paused its buyback program. Meanwhile, the European Union has approved Google's $32 billion acquisition of cybersecurity startup Wiz, making it Alphabet's largest ever takeover. The deal was cleared by US antitrust authorities last year, and the European Commission now says the takeover is unlikely to impact competition in the bloc. And it's jobs Wednesday, with January's delayed U.S. jobs report set for release at 8:30am Eastern. Stock futures are inching higher ahead of the report, which is expected to show a slight acceleration in hiring and unemployment holding steady at 4.4%. Coming up, Wall Street's hunt for good stock investments goes global as investors shy away from US Companies and Maine's Susan Collins sets up a battle for the ages as the senator announces her run for re election. That's after the.

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[Luke Vargas]

Well after years of making outsized bets on the largest U.S. companies. Wall Street's hot new trade is to buy everywhere else. Our Daniel Bach spoke to financial markets reporter Hannah Aaron Lange about what's driving investors to look abroad.

[Hannah Aaron Lang]

So 2026 is shaping up to be a really big year for international stocks. Lots of global indexes are outperforming the S&P 500 this year. You have Korea's Kospi up almost year to date. The Nikkei in Japan up 14.5%. Even the stocks Europe 600 up nearly 5%. And for context, the S&P 500 is just under 2%. And that hasn't been the case for much of the last decade. The United States lead on the rest of the world when it came to financial markets was just so large, it really seemed like investing in domestic companies was really the only way that US Investors could win. And though we haven't seen America give up its lead on other countries across the world, we are seeing investors take a fresh look at international equities.

[Luke Vargas]

And why are investors putting their money abroad?

[Hannah Aaron Lang]

There's a couple of things driving this. One is the weakening dollar. We've seen the dollar slide roughly 10% from its highs in around 2022. So why does a weakening dollar matter in this case? Well, it works by juicing returns on foreign stocks by boosting the value of those companies earnings relative to American companies. Right. If I'm ear in Euros, those are now more valuable relative to the US Dollar. But it's not just movements in currencies. There are developments abroad that are boosting the economies of those countries. So examples that I heard my sources cite were defense spending in Europe. Lots of countries there trying to build up their defensive capabilities in light of the shifting geopolitical landscape. Japan's government is also preparing to inject even more stimulus into the economy. And also increasingly, US Investors are worried about what they call concentration risk. So the US Stock market is dominated by just a handful of companies, many of them closely linked to the artificial intelligence buildout. And that's a trade that Wall street has had some anxieties about in recent weeks. So this theme of diversification more broadly is a big one among investors this year. And international stocks are also a piece of that.

[Luke Vargas]

Hannah, we've talked a lot about the sell America trade here on the podcast. Is that also a factor?

[Hannah Aaron Lang]

This trend has kind of revved up since last spring when you saw the tar turmoil that really rattled markets around April 2025. And you saw in that case global investors dump US stocks they dumped US Treasuries. That broad selling of US assets was called the quote, unquote, Sell America trade. So that phrase has been floating around on Wall street for, you know, the better part of a year now, too. But the money managers that I talked to for this story were quick to tell me that they don't feel like this is sell America Part 2. This is not a case where America's lead on the rest of the globe will completely disappear. Most of these fund managers still believe that the US Will lead global equity markets higher for the next several years, just perhaps by not as wide a margin as we've seen over much of the past decade.

[Luke Vargas]

That was Journal Markets reporter Hannah Aaron Lang speaking to our Daniel Bachelor. And finally, Maine Republican Senator Susan Collins is running for reelection, boosting the GOP's chances of holding onto their Senate majority in the midterms. Democrats are hoping to flip the seat blue and said that the 73 year old Collins should have decided to retire. Maine's 78 year old Governor Janet Mills is running for the Democratic nomination, but is facing a battle for the ages against 41 year old progressive Graham Platner. His candidacy comes amid growing calls for older office holders to cede the stage to younger faces, which national Politics reporter John McCormick told us includes potentially limiting how long lawmakers can serve the age of federal judges.

[John McCormick]

Members of the Senate and members of the House have all crept higher in recent decades. And it's not that unusual for members of Congress to die on the job as three did in 2025 alone. Rahm Emanuel, a 66 year old Democrat and Washington veteran, recently called for a mandatory retirement age of 75 for presidents, cabinet officials, members of Congress and federal judges. The idea of term limits or an age limit is popular among voters. A YouGov poll released last month showed that 73% of American adults think there should be a maximum age for the presidency, while 69% said that for the House and Senate.

[Luke Vargas]

And that's it for what's news for this Wednesday morning. Today's show was produced by Hattie Moyer and Daniel Bock. Our supervising producer is Sandra Kilhoff and I'm Luke Vargas for the Wall Street Journal. We will be back tonight with a new show and until then, thanks for listening.

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