The return of ROW ?

Tavi Costa’s chart makes an interesting point: after almost 15 years of relentless US outperformance, the trend may finally be starting to change.

That does not mean US tech is finished. But the next phase of AI investment should broaden well beyond semiconductors and software. It also requires power, grids, data centres, copper and physical infrastructure.

That makes sectors such as materials increasingly interesting, especially at a time when valuation gaps remain large.

The US does not need to fall for the rest of the world to outperform. The gap simply needs to stop widening.