Non-U.S. equity investors continued to be pummeled by geopolitical anxieties and economic forces unseen since the 1980s. Russian aggression may be the proximate cause for a new wave of populism in Western Europe, leading to a far right-wing leader in Italy and a rightward shift in Swedish politics over the quarter. Liz Truss’ disastrous forty-nine days as UK Prime Minister sent shockwaves through global debt markets that led to fears of a GFC-style unraveling. Fortunately, bond yields, which had risen dramatically after her botched tax reform, have largely reverted to previous levels with her ouster. Chinese leader Xi Jinping’s ever-tighter control over his nation’s institutions may mean a more militarist and less mercantilist China moving forward.
Recent Insights
Quarterly International Equity Strategy Q2 2026
Q2 saw a sharp risk-on rally as easing Middle East tensions and renewed AI-buildout conviction reversed Q1's energy shock, with non-U.S. markets—especially hardware- and semiconductor-heavy economies—leading the rebound. Given the speed of thd reversal and July's renewed volatility for both geopolitics and AI sentiment, we continue to favor staying diversified rather than tied to one theme, country, or style, while still expecting non-U.S. equities to lead over a multi-year horizon due to broad participation, attractive valuations, and structural tailwinds.
August 7, 2026
Bailard Foundation Nears $1.5 Million in Grants as Firm Earns Sixth Bay Area Philanthropy Ranking
Bailard earns its sixth consecutive appearance on the San Francisco Business Times' list of Top Bay Area Corporate Philanthropists.
August 4, 2026
Country Indices Flash Report – July 2026
Middle East tensions escalated as the US-Iran truce collapsed: the U.S. reinstated a naval blockade of Iranian ports and ordered fresh strikes, while Houthis hit Saudi-linked tankers in the Red Sea. Brent surged past $100/barrel before retreating.
July 31, 2026
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