By Jeffrey Kleintop
We recently published the 2019 Mid-Year Global Outlook, which included the chart below on how the inversion of the U.S. Treasury yield curve suggests that international stocks may finally begin to outperform U.S. stocks as we look out over the next 10 years. This may surprise many investors after 10 years of U.S. stock market outperformance (since the last inversion in 2008).
Changes in U.S. and international performance trends around yield curve inversions
Shaded areas mark periods when the U.S. yield curve was inverted (3-month to 10-year)
Source: Charles Schwab, FactSet