Choosing Undervalued Markets Over Popular Tech Stocks for Better Returns

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Undervalued Markets,Tech Stocks,Growth Opportunities

Consistent undervaluation in certain countries presents promising growth opportunities compared to the saturated US market.

When faced with a choice between two sets of assets - one performing well and popular, while the other is declining with bleak prospects - opt for the latter.

Why? Because with careful analysis, investors are likely to find more opportunities with big returns.When we look at the equity risk premium across different regions, we notice that the American market offers lower expected future returns compared to the Asian market, which is significantly discounted.Instead of just selling off safer investments altogether, a smarter move today might involve shifting your focus to different countries and regions.

'High valuations today=low expected future returns tomorrow' consistently holds true. That's why buying during periods like 2022 is certainly wiser than purchasing at peaks or during periods of overexuberance.

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