The global investment environment is going through a period of meaningful structural change. The dominance of the U.S. dollar is increasingly being questioned, geopolitical tensions are rising, and macroeconomic uncertainty remains elevated. Together, these forces challenge the post-Global Financial Crisis environment in which U.S. equities consistently outperformed most international markets. As a result, investors may be approaching a turning point where relative returns between U.S. equities and international markets—especially Emerging Markets (EM)—begin to shift.

Rather than relying on static asset allocation approaches, we develop a dynamic allocation model that uses momentum and trend signals to generate practical timing signals between U.S. and EM equities. Emerging Markets are particularly interesting in this context because they tend to experience stronger regime shifts and larger performance cycles than developed international markets.