The U.S. is having a good year, but 14 other countries are doing even better.
What's going on here? Why are so many other countries outperforming our stock market? They’re each rallying for different fundamental reasons, but there’s a clear common thread: AI‑driven semiconductor demand, commodity strength, governance reforms, and renewed capital flows into emerging markets. Here’s the country‑by‑country breakdown, using the most current data.
South Korea - up 89% YTD
This is the strongest equity rally in any major market in 2026. Why? Primarily because the KOSPI is in a historic AI semiconductor supercycle. There is an HBM memory boom: SK Hynix (+258% YTD) and Samsung (+163% YTD) dominate global high‑bandwidth memory used in AI training. Their earnings exploded, and together they make up ~48% of the index.
Governance reforms: The “Value‑Up Program” reduced the long‑standing Korea Discount, lifting valuations.
Political stabilization: Post‑Yoon impeachment, foreign capital returned aggressively.
Taiwan - up 67% YTD
Taiwan is riding the global AI hardware boom. Semiconductor exports are surging: TSMC up 55% YTD; MediaTek up 192% YTD. Record export orders: up 49.5% year-over-year. GDP acceleration: Q1 GDP is up 15% YoY, the fastest in 48 years.
AI demand is directly powering both corporate earnings and the broader economy.
Colombia - up 24% YTD
Colombia’s COLCAP has been one of Latin America’s strongest markets. Corporate earnings strength: Big gains from Grupo Cibest, Sura, ISA, Mineros (+219%).
Capital inflows: Foreign investors and pension funds are net buyers amid global EM flows. Commodity tailwinds: Higher global commodity prices and a weaker dollar boosted valuations.
This market is rebounding from a decade of underperformance.
Thailand - up 22% YTD
Thailand’s SET Index is benefiting from a broad‑based domestic recovery. Strong trading activity: SET turnover of 35.9% YTD indicates heavy participation. Earnings rebound: Index EPS at 94.06, with YTD performance up 28%. Sector rotation: Financials, consumer sectors, and regional CLMV exposure are contributing to Thailand's stock market gains.
While not AI‑driven, Thailand is benefiting from regional economic normalization.
Austria - up 20% YTD
Austria’s ATX is hitting record highs. Strong corporate performance by AT&S (+555%), Austriacard (+65%), FACC (+57%) are major drivers.
High equity turnover - the strongest since 2008.
Dividend appeal: Austrian stocks are seen as stable, high‑yielding, and tied to Central/Eastern Europe growth.
Austria is benefiting from both domestic strength and AI‑related demand via AT&S.
The other outperformers:
Netherlands - up 19% YTD
Peru - also up 19% YTD
Greece - up 17% YTD
Japan - also up 17% YTD
Singapore - up 15% YTD
Poland - up 14% YTD
Turkey - up 13% YTD
Brazil - also up 13% YTD
Italy - up 12% YTD
Why am I telling you this?
It's not to paint the U.S. as a global loser - we are up nicely YTD, thank you. It's to make the point that "Home Bias" is real, and many of my clients stubbornly refuse to invest outside of the U.S. This year, home bias can be a real drag on performance. That assumes, of course, that you pick the right countries. But wait a second... you don't have to do that. There are regional ETFs that give you blanket exposure to the Eurozone, for example, or to the Asian markets, or the Middle East, and so on.
If you are underexposed to non-US markets, I urge you to loosen up a little and consider the global picture.