Q4 2025 Global Convictions: Trends, Insights, and Forecasts

The third quarter of this year showcased consistent growth and strong performance across global markets. U.S. stocks climbed over 8% with minimal volatility, remaining near record highs. Diversification delivered results—emerging markets surged nearly 11%, and international developed markets gained almost 6%, both outperforming U.S. stocks year-to-date. 

Bond markets rebounded, posting their strongest returns since 2020 and reaffirming their importance as portfolio diversifiers. The ongoing rate-cutting cycle continues to support recovery and create new opportunities in fixed income. 

Discover Morningstar’s Global Convictions Report. Gain actionable insights into the trends shaping international markets and uncover attractive investment opportunities.