Mega-cap growth has led the way for the past 15 years both in the U.S. and internationally.
One way to visualize this theme is by comparing the Dow to the Nasdaq.
The Dow leans toward blue-chip, value names, while the Nasdaq is packed with high-growth, tech-heavy stocks.
Right now, this relationship is at a critical inflection point as it tries to make a valid resolution to new record highs.
After breaking out above the dot-com bubble peak last year, the QQQ/DIA ratio hasn’t exactly ripped higher. Instead, it’s just hanging out above that key level.
If it rolls over and loses those former highs, it could signal a shift away from tech dominance. That’s where value and international markets might step in and take the leadership reins.
While many dismiss this theme, opportunities abroad have been stacking up.
Just look at how Latin American stocks are outperforming out of the gate in 2025.
China is also in rally mode, and it’s a major theme for us in 2025. Steve went live yesterday to break it all down—walking through key trades and what’s next. It’s his favorite investing opportunity in years.
