Last year the U.S. stock market posted solid double-digit returns—but here's the thing: European and Asian markets left it in the dust. The main culprit? Capital fleeing the States and flooding into overseas markets riding the global AI wave.

When money rotates out of one region, it's gotta go somewhere. Europe and Asia caught that flow, and combined it with the unstoppable AI momentum sweeping through tech sectors worldwide. That's a potent combo for outperformance.

It's a textbook example of how geopolitical currents, capital allocation, and emerging mega-trends shape market dynamics. While U.S. equities delivered gains, they simply couldn't match the tailwinds hitting international markets. The broader lesson: stay alert to where capital is actually moving—those patterns often signal where the next leg of returns might show up.