Quality Growth
Global equities specialists since 1984. We provide a boutique investment experience for institutional and intermediary clients around the world.
Staying power: the lasting potential of international equities
Quality Growth Boutique
Despite the strong rally in US equities post Liberation Day, 2025 is the first year in over a decade where many investors recognized the growth potential outside of the US. That said, some investors believe it was a short-lived phenomenon and that US equities will continue to dominate. In our view, investors can find long-term opportunities driven by structural growth in non-US markets.
Europe’s economic transformation: defense, technology, and infrastructure
Driven by their geographic proximity to Russia and the Middle East, and doubts about the reliability of US support in potential conflicts, European governments are ramping up their defense budgets. At the 2025 NATO Summit, NATO allies committed to investing 5% of annual GDP on defense related spending by 2035. The European Commission also took steps to increase investments in AI and technology. And, Germany’s debt brake marked a historic constitutional reform with the country loosening its national fiscal rule. Germany is increasing investments in infrastructure, earmarking billions for rail, broadband, and bridges.
European consumer strength
The current savings rate for European households is above its pre-COVID average, while the US savings rate has fallen below its pre-COVID average. This suggests that European consumers may have more capacity to increase consumption compared to their US counterparts – a potential catalyst for heightened economic activity in the European region.
Rising risks in the US highlight the need for international diversification
Margin expansion has been driven by manufacturers; however, the imposition of tariffs may put pressure on profit margins. The rising fiscal deficit poses further risks to the US market.
International equities: an enduring opportunity
In our view, the international equity story is not a fleeting trend. With fiscal stimulus, accommodative monetary policy, robust consumer spending potential, and favorable currency dynamics, the case for looking beyond the US is strong.
Investing involves risk, including the possible loss of principal. Investment risks include, but are not limited to, the following: International investing can be more volatile and have lower overall liquidity than investments in U.S. securities and may lose value because of adverse local, political, social, or economic developments overseas, or due to changes in the exchange rates between foreign currencies and the U.S. dollar. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Diversification does not ensure a profit or guarantee against loss. Indices are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.
About the author
David Souccar
Chief Investment Officer Quality Growth, Portfolio Manager, Senior Research Analyst
Related strategies
About the author
David Souccar
Chief Investment Officer Quality Growth, Portfolio Manager, Senior Research Analyst
Topics:
Related insights
Quality Growth Boutique
International equities: finding growth in shifting markets
Markets inevitably shift, but global diversification endures. A thoughtfully constructed portfolio that combines leading US and non-US companies can offer meaningful advantages to long-term investors: enhanced performance potential, compelling valuations and access to growth industries where the US lags.
Quality Growth Boutique
“Quitters never win” or do they?
Quitting is often misunderstood as weakness. But in investing, selling is the overlooked half of decision-making, hindered by biases like sunk cost fallacy or FOMO. In our view, knowing when to walk away is essential for preserving capital and seizing better opportunities.
Quality Growth Boutique
AI Killed the Radio Star?
The pace of progress in AI is extraordinary. But will it displace popular music or broader media in the near term? We continue to monitor developments closely, particularly in hybrid human-AI creative workflows, evolving rights frameworks, and new monetization models that could shift competitive dynamics over time.
Quality Growth Boutique
Masters of their own destiny: how quality companies shape the future
In our latest Quality Conversations videos, discover how quality companies—those with strong franchises, pricing power, and unlevered balance sheets—can thrive in uncertain markets. By navigating inflation, shifting economic cycles, and interest rate volatility, these "masters of their own destiny" appear to offer resilience and long-term growth potential.
Quality Growth Boutique
Diagnosing a giant: On-the-ground insight into UnitedHealth Group’s rise and fall
From deep dives into state and federal probes, to conversations with corporate clients and health plan auditors, our investigative analyst helped identify early warning signs of UnitedHealth Group’ s shift from market leader to a company facing regulatory liability. This case study highlights the benefits that former investigative journalists bring to the Quality Growth research process.
Quality Growth Boutique
Replay – Steering through tougher conditions: finding resilience in quality
You can now watch the replay of our webinar “Steering through tougher conditions: finding resilience in quality”.