NEW YORK: Even though the U.S. stock market continues a record-breaking rally that has sent the benchmark S&P 500 index up nearly 25per cent for the year, investors appear to be looking elsewhere for better values in the year ahead.
"We're starting to see a period where valuation is going to be the driver for future returns," said David Marcus, chief investment officer at Evermore Global Advisors. He has been shifting more of his portfolio into European stocks such as Belgium-based medical lab equipment maker Fagron NV and French media giant Bollore SA .
"Some of the higher valuations for U.S. shares has been warranted because the U.S. had a much faster growth rate. But going forward if there's a trade deal announced or an amicable solution to Brexit, the divergent growth rates could converge again" as U.S. growth slows, said Banks. Further declines in the U.S. growth rate will also likely bring down the value of the dollar, which has hovered near record highs and eaten into the returns of investing in overseas markets, Banks said.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BusinessTimes - 🏆 15. / 51 Read more »
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »