Overseas stock markets have outperformed the U.S. in 2015, with the MSCI EAFE gaining 9.0% through May versus 3.2% for the S&P 500.

Aggressive foreign central bank policies, as well as stronger economic growth and earnings results, have boosted foreign market returns. Indeed, Europe posted first quarter earnings results that were stronger than in the U.S. (chart).

We believe the combination of attractive value, central bank stimulus, and improved economic and earnings performance can continue to boost overseas market performance. As a result, growth-oriented investors should continue to emphasize overseas equities in portfolios.