The Global Investor: Opportunities Around the World

In an era defined by rapid technological innovation, geopolitical shifts, and evolving market dynamics, global investors face both unprecedented challenges and remarkable opportunities. By examining where capital is flowing, understanding the macro and structural drivers at play, and adopting thoughtful regional strategies, investors can position themselves for long-term success.

Big-picture: Global Capital Flows and Trends

Global foreign direct investment has experienced headwinds, yet the overall scale remains gigantic. In 2024, FDI fell for the second straight annual decline to around $1.5 trillion, driven by tighter financing conditions, geopolitical tension, and policy uncertainty.

• Global FDI fell by 11% to about $1.5 trillion in 2024, even as digital and renewable projects gained traction.
• FDI stock in the U.S. reached about $5.7 trillion by end-2024, up 30% since 2019, keeping America at the center of capital flows.
• Cross-border PE deals surged to $750 billion across 4,849 deals by Q3 2025, as firms diversify in response to de-globalization and supply chain de-risking.

Within this broader ebb and flow, energy transition and digital infrastructure projects have proven more resilient, reflecting global commitments to decarbonization and connectivity. Private equity continues to act as a flexible allocator, with global PE investment reaching $1.5 trillion in the first three quarters of 2025 and exits totaling $832 billion by Q3 of that year.

Investor sentiment remains anchored on major markets. According to PwC’s Global Investor Survey 2025, two-thirds of respondents still name the United States as their top target, even as interest in emerging and frontier markets grows. Over the next three years, the majority expect increases in R&D, capex, M&A, and strategic alliances, signaling confidence in sustained corporate spending.

• United States: 67% of investors name it top target for deployment.
• India: 45% plan significant new allocations.
• Chinese Mainland: 32% view it as a core market.
• UK and UAE: tied at 26% each for future capital flows.

Regional Opportunity Set for a Global Investor

Success in global investing demands deep insights into regional growth drivers, valuation landscapes, and sectoral themes. Below, we explore key markets and their defining characteristics.

United States: Core with New Sector Leadership

The U.S. remains the world’s preeminent destination for capital, supported by abundant liquidity, robust corporate earnings, and a sophisticated financial ecosystem. Yet, investor optimism on global growth is slightly muted among U.S. respondents (53%) compared to their global peers (64%), suggesting a cautious stance on longer-term expansion.

Private equity in Q3 2025 hit a 14-quarter high of $300.1 billion in deal value, driven by mega public-to-private transactions. Total PE deal value in the U.S. reached $827.8 billion by Q3, nearly matching the full-year 2024 total despite a leaner deal count.

Key U.S. sectors attracting global capital include:

• TMT (technology, media, telecom): $285.9 billion in PE investment by Q3 2025, led by AI and software platforms.
• Consumer & retail: $107.8 billion, focused on premium brands and logistics-adjacent firms.
• Healthcare: $73.5 billion, emphasizing healthtech and tech-enabled care models.
• Infrastructure: $65.1 billion for AI/data centers and energy projects.
• Automotive: down to $10.1 billion, reflecting margin pressure and supply constraints.

The reopening of U.S. IPO markets further underpins exit opportunities and valuations, while AI, digital infrastructure, and the energy transition remain dominant long-term theses. Investors must, however, manage crowding risk due to the sheer volume of capital targeting American assets.

Europe and Developed International Markets

Europe and its developed peers offer a blend of stability and selective growth. Projected GDP growth of around 2.4% in 2025, rising to 2.6% by 2027, falls short of past decade averages but still provides a reliable backdrop for investment.

These markets often outperform when U.S. exceptionalism wavers, fueled by political stability in core countries, deep capital markets, and supportive green transition policies under frameworks like the EU Green Deal. Structural challenges—aging demographics and higher energy costs—temper returns but create compelling opportunities in energy transition, industrial decarbonization, and niche technology.

Within these geographies, investors can explore:

• Energy and industrials benefiting from nominal growth and capex cycles.
• Selective technology firms poised for global leadership.
• Luxury goods and consumer brands with emerging market exposure.

Emerging Markets: Growth, Valuation, and Dispersion

Emerging markets represent the “next frontier” for many global investors. With a projected growth differential of about robust EM-DM growth gap of 2.5 percentage points in 2025 and MSCI EM earnings growth expected to accelerate to 17%, the upside potential is significant.

Macro conditions support this dynamic: many EM central banks are easing rates, credit cycles are strengthening, and a weaker U.S. dollar is historically favorable for EM equity and bond inflows. Valuations remain attractive, with MSCI EM trading at 12.4× forward earnings—near its 25-year average and at a discount to developed markets.

Despite strong year-to-date performance in 2025, EM remains under-owned, accounting for just 5% of global assets under management versus 8% in 2017. This gap, combined with wide forward P/E differentials relative to the S&P 500, suggests room for mean reversion.

Performance dispersion within EM is large:

• Poland up over 35%, Thailand down nearly 12% in the same period.
• Latin America outperformed on policy stability and commodity cycles.
• Parts of Asia lagged due to export weakness and political uncertainty.

Key market vignettes include China, where policy stimulus hints at a cyclical upturn amid real estate headwinds, and India, benefiting from demographic tailwinds and structural reform momentum.

Approach: Strategies for Navigating Global Markets

Effective global investing blends strategic vision with disciplined execution. Consider the following pillars:

Diversification with conviction: Allocate across regions and themes—technology, green infrastructure, and healthcare provide durable growth drivers while spreading geopolitical and currency risk.

Rigorous due diligence: Examine regulatory environments, local partnerships, and governance standards. In developed markets, leverage deep research networks; in EM, partner with reputable local managers.

Dynamic rebalancing: Adjust exposures based on valuation gaps, momentum signals, and thematic shifts. For example, increase EM allocations when P/E discounts widen, and rotate into defensive sectors during global slowdowns.

Active risk management: Use hedging strategies for currency and interest rate volatility. Monitor supply chain geopolitics and regulatory changes that can affect cross-border deals and exit timelines.

Long-term thematic alignment: Focus on secular trends—AI and digital transformation, energy transition, aging populations—rather than short-term cyclical bets. These themes outlast market cycles and build resilient portfolios.

Finally, cultivate flexibility and patience. Global markets evolve through cycles of optimism and retrenchment. By combining a thoughtful, data-driven approach with a bold thematic vision, investors can harness the full spectrum of opportunities across regions and sectors.

As capital continues to ebb and flow around the world, the global investor equipped with insight, discipline, and creativity will find pathways to growth that outpace the narrow confines of traditional portfolios. Now is the time to expand horizons, embrace diversity, and invest in the future of a connected global economy.