The US equities market seems to have undergone a fundamental shift from just two years ago, when capital flowed almost indiscriminately into anything associated with artificial intelligence, regardless of earnings quality, cash flow durability, or balance sheet stress. It was understandably a time of unchecked optimism, a little naivety, and lots of greed. Investors were looking to grab a piece of the AI pie, and ask questions later. As a result, of course, valuation frameworks were stretched, time horizons were extended, and execution risk was largely ignored as long as revenue growth appeared exponential.

Today, that dynamic seems to be coming undone, and the market seems noticeably concerned about the return on invested capital, capital intensity, and the timing of monetization.

In fact, given how the US market in general is influenced by the clouded expectations of AI growth, and the record levels of big tech concentration in the S&P 500, investors are increasingly turning to find structural alpha outside the USA:

It seems to be quite clear that smart money has already recognized that US-heavy allocations are not the place to capture the next wave of durable returns.

Furthermore, a weakening US dollar, relative to domestic currencies across the world, acts as a further tailwind, boosting returns for dollar-based investors. As a result, investors face both a carrot and stick that encourages them to think outside the box, or rather outside the United States.

Why Shifting to Non-US Stocks Makes Strategic Sense 

In 2025, the MSCI EAFE Index of non-US developed-world stocks had seen a climb exceeding 31% versus the 18% rise seen with the S&P 500.

Despite this stellar outperformance, however, valuations for non-US equities remain well below those of the US market, signaling that significant upside potential could still exist. As such, there seems to remain a clear window of opportunity to transition towards non-US heavy allocations, moving forward.

A more globally diversified portfolio offers the following advantages:

• Lower Concentration Risk Abroad: Top non-US stocks represent a much smaller portion of broader markets (~13%) versus the US (~40–48%). JP Morgan highlights that exposure to non-US markets, which offer greater sector diversity, and thus can reduce portfolio volatility.

• Earnings Growth Potential: Historical data shows US earnings leadership is not permanent; non-US companies have outpaced US earnings in multiple decades. Current forecasts indicate rising earnings in Japan and emerging markets, suggesting future multiple expansion.

• Structural and Policy Tailwinds: Europe’s fiscal stimulus, increased NATO and defense spending, infrastructure investment, and bank shareholder yields, alongside Japan’s corporate governance reforms and targeted monetary easing, create catalysts for earnings growth outside the US.

Broadly speaking, non-US stocks can complement US holdings by providing stable earnings streams at attractive valuations, helping risk-aware investors navigate geopolitical and macroeconomic uncertainties. 

Strategic Exposure: Argentina’s Recovery Story

For the average investor looking to diversify away from an expensive US-heavy portfolio, there are a broad range of different markets to consider, each of which combine growth potential with lower concentration risk. 

Europe, for instance, seems positioned for a boom with its fiscal measures, and increased defense spending on NATO. Japan, on the other hand, is also being framed in a similar manner after the strong performance of its domestic reforms, including targeted monetary easing and corporate governance improvements.

And then there are the high potential emerging economies across various parts of the globe where structural reforms, demographic trends, and natural-resource advantages create compelling opportunities.

One market that stands out particularly well is Argentina. Following tough austerity measures put in place by libertarian president, Javier Milei, the country reported a year of a budget surplus in 2024, for the first time in nearly 15 years. Following these hard measures and spending cuts, the country has also been seeing regular fiscal surpluses following years of deficit. These measures have positioned the economy with far more resilience than was seen in recent years.

Inflation, which had previously soared to annualized levels near 250%, is projected to fall to around 14–17% in 2026, reflecting meaningful macroeconomic stabilization.

Economic growth prospects are improving as well. The OECD projects roughly 3% GDP growth in 2026, supported by structural reforms, including labor initiatives aimed at reducing wage costs and boosting formal employment. These reforms enhance competitiveness and create a foundation for sustainable private-sector expansion.

Strategically, several sectors offer particularly compelling opportunities. Argentina’s energy sector is poised to become a global LNG supplier, with major joint ventures unlocking the Vaca Muerta shale basin and establishing long-term export capacity. Meanwhile, the mineral resources space is set for large-scale development, with copper, gold, and silver projects in the Vicuña District targeting production over the next several years.

Despite recent rallies, valuations in key Argentine sectors—including banks, energy, and mining—remain attractive, reflecting early-stage repricing rather than full optimism. Combined with reduced political risk and a more predictable policy framework, Argentina presents a rare blend of high potential upside and diversification benefits for investors looking to complement US-heavy portfolios.

A Tactical Allocation for Explosive Returns

For investors seeking structured access to Argentina’s evolving market, Surmount offers a targeted strategy designed to capture growth while managing risk.

The approach evenly allocates capital across eleven carefully selected Argentine stocks, giving each position a 9.09% share of the total investment.

This allocation is rebalanced every 30 days, allowing the strategy to stay aligned with market developments and sector dynamics. By spreading exposure across multiple companies and sectors, the strategy provides diversification, helping to reduce concentration risk while offering participation in Argentina’s macroeconomic recovery, energy developments, and mineral-resource expansion.

Overall, this method offers investors a balanced and disciplined entry into Argentina, combining broad sector coverage with ongoing oversight to maximize potential upside in a market that remains attractively valued.