Last year, Scott Galloway predicted that emerging markets would outperform U.S. stocks in 2026. (1)

"I believe that what we're going to see is, after a 15-year bull market run for U.S. stocks, we're gonna start to see the river, or the flow of capital, reverse," he told his Prof G Markets co-host Ed Elson. "And we're gonna see more people go hunting for cheaper stocks in emerging markets."

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In a recent Office Hours with Prof G segment, Galloway noted that this is one of his predictions he is most proud of. (2)

A listener asked Galloway whether he still recommends diversifying away from the U.S. stock market and into international markets given the war in Iran.

"Do you still see a value there based on their energy reliance?" the listener asked.

He didn't hesitate in his response.

"International is winning even despite the Iran shock," Galloway answered. "It doesn't matter which style you pick or asset class, every version of international is beating the U.S. equivalent year to date."

According to RBC, "corporate earnings in emerging markets are expected to grow about 20% in 2026." (3) This would make emerging-market stocks the fastest-growing major area for equities for a second year in a row.

The MSCI Emerging Markets Index is currently up 46.9%, (4) "climbing 16% since the start of 2026, versus a gain of almost five percent for the S&P 500 Index," according to Bloomberg (5).

And Galloway isn't the only proponent of leaning into emerging markets. In another episode of Prof G Markets, Josh Brown — CEO of independent investment advisory firm Ritholtz Wealth Management — told Ed Elson that "it almost doesn't matter what stocks you buy, what style, what strategy." (6) He added that, "if you are in any way at least equally weighted globally relative to the benchmark to the U.S., your portfolio looks amazing right now."

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Galloway said that the gap between global and U.S. markets is "unusually wide even by financial standards … even with international markets coming up and U.S. markets going down." (5)

That being said, he's moving his money overseas.

"I bought a British aerospace company, I'm actually looking at mercado libre or Latin American stock and my biggest investment is in a fund that finds special situations outside of the U.S," he shared.

If you're keen on following Galloway's lead and getting into emerging markets yourself, ETFs or mutual funds could be a good place to start as they offer diversification across many investments, so you can reduce the risk that is always a possibility when it comes to the often volatile markets.

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YouTube (1),(2),(6); RBC Global Asset Management (3); MSCI (4); Bloomberg (5)

This article originally appeared on Moneywise.com under the title: Scott Galloway is moving his money overseas — as the gap between global and U.S. markets is 'unusually wide'

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