US Stock Market Outperforms Emerging Markets by Historic Margin
The outperformance of U.S. equities over emerging markets has reached historic proportions, according to data shared by The Kobeissi Letter.
The ratio comparing the performance of emerging markets to U.S. stocks is now at its lowest point in approximately 55 years, falling to about one standard deviation below its historical average.
This trend underscores the sustained strength of the U.S. market, even surpassing levels seen during the Dot-Com Bubble peak in 2000, when speculative valuations drove U.S. equities to record highs.
Decade-Long Dominance of US Equities
Since the aftermath of the 2008 financial crisis, U.S. stocks have consistently outperformed their emerging market counterparts. From 2009 to 2025, the S&P 500 has delivered a remarkable 562% return, while the Emerging Markets ETF ($EEM) has gained only 163%—a performance gap of roughly 3.4x.
This prolonged divergence highlights the appeal of U.S. assets among global investors, particularly amid macroeconomic uncertainty, stronger corporate earnings, and technological innovation that continues to drive U.S.-based growth.
Popularity at a Peak
The Kobeissi Letter notes that U.S. stocks are now more popular than ever, reinforcing a narrative where global capital continues to favor developed markets despite the long-term growth potential often associated with emerging economies.
As the performance ratio hits multi-decade lows, analysts are watching closely for signs of mean reversion—or whether U.S. equities will continue to dominate well into the next market cycle.
Kosta Gushterov
Reporter at Coindoo
Kosta joined the team in 2021 and quickly established himself with his thirst for knowledge, incredible dedication, and analytical thinking. He not only covers a wide range of current topics, but also writes excellent reviews, PR articles, and educational materials. His articles are also quoted by other news agencies.
