These stocks have the edge over Wall Street, but investors are ignoring them, says Schwab strategist

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Charles Schwab's chief global investment strategist Jeff Kleintop thinks international stocks are an overlooked opportunity right now.

The month of March is winding down in a not-too-shabby fashion as the banking mess seems calmer for now. After an ugly February, the S&P 500 SPX is set for a 1.4% gain, while the Nasdaq Composite poised to bounce 4%.

“This is an area that investors have been shying away from for over a decade, yet every month this year, international stocks have outperformed U.S. stocks through the fears of recession in January, to the overheating and inflation worries of February to the financial crisis of March,” Kleintop told MarketWatch in an interview on Wednesday.

As for Wall Street, the strategist is wary about more volatility to come this year. Like others, he’s worried about the U.S. commercial real-estate sector, which could be complicated especially given lending seen by smaller banks. The markets Stock futures ES00 YM00 NQ00 are pushing to three-week highs, with bond yields TMUBMUSD10Y TMUBMUSD02Y edging higher and the dollar DXY down. Oil CL00 is up nearly 1%.

 

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Foreign currencies tend to depreciate vis-a-vis the dollar, so you may lose on the exchange rate when you cash in your international stocks.

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