As worldwide markets are challenged by trade wars, higher interest rates, conflict in the Middle East, and the lingering battle between Russia and Ukraine, one thing has not changed: U.S. stocks are more expensive than global stocks. And with the large run-up in stock prices in 2023 and 2024, U.S. stocks became even more expensive. The trailing P/E ratio on the S&P 500 is 27.0, above the global average of 18 and well above the 12-15 average P/Es for emerging-market stocks in China and Latin America. A review of yields tells a similar story. The current dividend yield for the S&P 500 is 1.2%, versus the global average of 2.4% and Australian and Latin American yields of 3%-6%. Taking a step back, investors generally are willing to pay a higher price for North American securities because of the transparency of the U.S. financial system as well as the liquidity of U.S. markets. What is more, global returns can be volatile across individual countries, given currency, security, political, and geopolitical risks. Indeed, U.S. stocks (ETF SPY) have outperformed EAFE (ETF EFA) over the past year as well as over the past five years. The tide is turning a bit in 2025, as global investors respond to the uncertainty over U.S. trade policy and as global central banks lower rates. Year to date, global stocks are up 18%, while U.S. stocks are up 7%. Given expectations for more trade-related volatility in the months ahead, we think diversified investors should have 20%-25% of their equity allocations in international stocks so as to take advantage of the value. We have been adding global stocks to our Universe of Coverage.

Anheuser-Busch InBev SA/NV produces and sells beer, near-beer products, and soft drinks worldwide. The company, whose origins date back more than 600 years, has over 500 beer brands, including Budweiser, Stella Artois, Beck's, Leffe, and Michelob. Through a range of M&A deals, it has become the world's largest brewer by volume and one of the world's largest consumer products companies by revenue. It employs approximately 144,000 people.

Stocks are moderately lower at Wednesday midday. This follows a huge up day yesterday after President Trump said he will delay tariffs on EU imports to the U.S. until July 9 and the EU is on board to fast-track terms. The yield on the 10-year Treasury note is 4.50%. Oil is at $62 per barrel.

Anheuser-Busch InBev is the largest brewer in the world and one of the world's top five consumer product companies, as measured by EBITDA. The company's portfolio contains six of the top 10 beer brands by volume, according to Euromonitor, and we estimate it distributes 23 brands with retail sales over $1 billion. AB InBev was created by the 2008 merger of Belgium-based InBev and US-based Anheuser-Busch. The firm holds a 62% economic interest in Ambev, an 87% stake in Budweiser APAC, and in 2016 it acquired SABMiller.