American capital surged into foreign markets, yielding significant profits in 2025 (Spain +49%).
The S&P 500 index experienced a 16.4% rise in 2025, marking a 38% increase since its low on April 8. Overall, it has risen 79% over the last three years, and a whopping 208% since March 2020, despite enduring two downturns during that period. It’s quite an impressive turnaround, really.
Back in March 2020, the Federal Reserve began a massive quantitative easing initiative, surpassing previous efforts to lower short-term interest rates to almost zero. This continued even as inflation started to climb in 2021, peaking at around 9%, before the Fed shifted to raising rates and unwinding some of the assets it had accumulated.
Comparatively, after the burst of the dot-com bubble in March 2000, the S&P 500 struggled for 13 years, with two significant declines. However, the situation began to change with extensive money printing from 2009 onwards, leading to the S&P 500 surpassing its March 2000 high in May 2013. Currently, it’s about 351% above that prior peak.
American capital flows into global markets.
While the S&P 500 had a strong year, it still lagged behind several major international markets, as U.S. investors flocked to foreign stocks, causing some of them—similar to cryptocurrencies—to surge.
Canada’s TSX Composite Index:
The TSX climbed 28.2% to reach 31,713 in 2025, following an 18% rise in 2024. Since the low in April, it has shot up 41%. Although U.S. tariffs might not favor Canada, they seem to have bolstered Canadian stocks, likely benefiting from that influx of U.S. capital.
The TSX index is now up 111% from its high in March 2008—though that’s trimmed to just 54% in U.S. dollar terms. Investors faced a couple of rough years; the Canadian dollar fluctuated significantly, impacting returns in U.S. currency.
Japan’s Nikkei Stock Average:
Japan’s Nikkei Stock Average has enjoyed a steady increase, rising 19% in 2024, above the bubble peak from 1989. In 2025, it climbed 26% to 50,339 yen. Over the last 36 years since that peak, it has only risen 29%. But, since January 2012, the index skyrocketed about 500% due to aggressive monetary easing by the Bank of Japan, which accumulated substantial government debt on its balance sheet. Now, it’s attempting to rein in inflation.
However, the yen has lost value significantly, trading at about 157 yen to the dollar now, down from 77 yen in early 2012. For U.S.-based investors, the 500% rise in yen terms translates to a 184% gain in U.S. dollars.
China’s Shanghai Stock Exchange:
The SSE saw modest gains, climbing 18.4% in 2025—following two years of decline. Despite past bubbles, the current level is 35% below the all-time high reached 18 years ago, effectively returning to where it was in May 2007.
Hong Kong Hang Seng Index:
A strong performance in 2025 followed a 21% rise in 2024, bringing the Hang Seng Index up 27.8%. Still, it remains down 23% from its record high in January 2018, reflecting a turbulent 18-year journey.
India’s BSE Sensex Index:
In 2025, the BSE Sensex increased by 9.1% to hit 85,220, just short of its peak from September 2024. Since 2010, the index has climbed 388%, although the Indian rupee has depreciated 51% against the U.S. dollar during that time.
Spain’s IBEX 35 index:
The IBEX 35 surged 49% in 2025, reaching 17,307, following a 14.8% rise in 2024. Over two years, this equates to a 71% increase. Notably, the index surpassed its previous all-time high from December 2007, ending the year 9% above it. This influx of U.S. capital has undeniably energized European markets.
Italy’s FTSE MIB Index:
Rising 31.5% to 44,945 in 2025 after a 12.3% gain in 2024, the FTSE MIB has more than doubled since October 2022, tripling since 2012. But, it still hasn’t recaptured the bubble peak from March 2000.
UK’s FTSE 100 index:
The FTSE 100 experienced a 21.5% rise in 2025, following a smaller increase in 2024. Over 25 years, the index has seen a modest 43% gain.
Germany’s DAX Index:
The DAX, one of Germany’s leading stock indexes, rose 20% in 2025 after an earlier 16.5% increase. Since its peak in March 2000, it has gained 33%.
France’s CAC 40 index:
The CAC 40 rose 10.4% in 2025 to 8,149, marking its first increase since April 2024, despite a decline in the previous year. Over the past 25 years, it has seen an 18% rise, but since major quantitative easing began in 2011, it has nearly tripled. The beginning of QT saw the ECB reducing its QE assets by more than half.
