Forget the U.S: Pros say another top market looks cheap and offers the 'best' opportunities

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Two investment professionals reveal their top stocks and funds in this alternative developed market.

Attractive returns and the breadth of opportunities are among the many reasons the U.S. has long reigned supreme for investors. However, according to one strategist, a different market has much better valuations right now. "The U.S. is relatively expensive. In terms of countries, Japan looks to offer the best combination of earnings growth, cheap valuations and policy support," Tom Stevenson, investment director at Fidelity International, told CNBC Pro.

Stock picks As investors weigh putting their money into Japan — especially given the weak yen vs. the dollar — TRP's Hurley and Fidelity's Stevenson both believe there are some investment gems to be found. Exporters in particular stand to gain given that they account for some 50% of the revenues registered by Japan's Topix Index, notes Hurley. "A weak currency makes them very competitive and boosts their earnings," he said.

 

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