January 15,  2026

Dear Friends:

Strangers Things: International Stocks – The Comeback Asset of the Year!

When Stranger Things debuted in 2016, it quickly became a cultural phenomenon popular with young and old alike. By the time its last season aired in 2022, many critics assumed the show had run its course and if it ever returned, it wouldn’t recapture the same magic. Then 2025 happened. Stranger Things came roaring back, quickly becoming one of the highest-rated series of the year—proof that what’s been counted out can still deliver a blockbuster comeback.

Similarly, International stocks had a stellar 2025. After trailing U.S. stocks for much of the past decade, non-U.S. equities delivered one of their strongest performances in years. The MSCI EAFE Index rose over 31% in 2025, with several international strategies performing even better. For example, DFA International Core Equity returned 36.3%, while DFA International Value strategies gained roughly 45% for the year.

In context, U.S. stocks had outperformed international markets in six of the previous seven years, making it easy for investors to question the value of global diversification. Many portfolios—and a large number of 401(k) plans—became heavily concentrated in U.S. equities as a result. For years, a “set it and forget it” approach focused almost entirely on U.S. stocks and bonds appeared to be the winning formula.

With the strong rebound in international stocks, five-year returns for globally diversified portfolios—particularly those including international value—are now far more comparable to U.S.-only portfolios, often with improved volatility characteristics. Interestingly, these returns came despite ongoing economic headwinds in parts of Europe and other developed markets, reinforcing a familiar investing lesson: markets often move ahead of the headlines. Diversification isn’t about predicting which asset class will shine next. It’s about owning multiple sources of return, so portfolios are better positioned when leadership changes. Years like 2025 highlight how global exposure can enhance returns and help smooth the ride over time.

Turns out, portfolios that include non-U.S. assets aren’t so strange after all.

2026 Tax Planning

As we move into 2026, several tax-related changes take effect, including updates to IRA and 401(k) contribution limits, along with new rules affecting Roth 401(k)s and 529 plans. Most of these changes are positive for investors and create new planning opportunities. We proactively incorporate these updates into our financial planning process, but please don’t hesitate to reach out if you have questions or would like to discuss how they apply. As always, it’s a pleasure to partner with you on your financial journey!

New Office Address – beginning March 2026

Please note that on March 1 we will be moving to a new office space in Cool Springs to accommodate our growing team.  This new office will have more flexibility for meeting and serving client needs, including concierge front desk support Monday-Friday.  The new address is 840 Cresent Center Dr.,      Suite 600.

Regards,

 

Mitch Anderson                               Destin Tompkins                      Allan Phillips