North America Against the World
Igor Manukhov - May 23, 2025
The relative rally of EAFE (Europe, Australia, Far East) stocks appears to be fading away against North America equities, particularly Canadian stocks.
A big surprise this year has the strong relative performance of EAFE stocks. I have shared the charts below in previous Chart of the Weeks. The black line represents EAFE vs Canadian stocks, while the red line represents EAFE vs US stocks. The rising lines represent outperformance of EAFE.
As you can see from charts below, this outperformance has been fading away since March. In fact, Canadian stocks have been gaining momentum, outperforming both EAFE and US equities. We have been adding funds to Canada to take advantage of this trend. As for EAFE, we will have to wait and see if the relative strength from late last year will develop into a more sustained uptrend.