Vanguard Sees US Stocks Losing to Canada for Years as AI Shifts

Canada’s stock market is beating the US handily in 2025 in a trend that’s just getting started and can run for the next five to seven years, according to Vanguard Group chief economist and head of investment strategy Joe Davis.

As artificial intelligence enters the next phase of its evolution, investors will start to focus on the shares of companies that are successfully adopting the technology rather than the highly priced firms that provide it, Davis said. In that scenario, “the odds are tilted” to several markets outside of the US, including Canada, he added.