“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.
Germany, the euro zone’s biggest economy, grew 0.1% in the third quarter after contracting 0.2% in the previous three months, easing fears that the bloc would fall into a recession. Danton Goei, portfolio manager of the Davis International fund, said more attractive valuations are pushing him into Asian stocks and multi-national companies that are positioned to benefit from domestic consumption in India and China.
“You can see that the trade war has had a very limited impact on their businesses and yet valuations have come down a lot because of the macro concerns. When you have very strong businesses and their valuations are falling for unrelated reasons, that appears like a good buying opportunity,” Goei said.
Slock Rocket!!
Winning...
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: MarketWatch - 🏆 3. / 97 Read more »