International stocks offer a host of opportunities for investors, says Schwab’s Jeffrey Kleintop

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Charles Schwab's chief global investment strategist believes low valuations for European stocks has created an attractive entry point for investors.

While the U.S. equities market is having a strong year, international stocks are the more promising investment play, according to Jeffrey Kleintop, Charles Schwab's chief global investment strategist. "International stocks are outperforming U.S. for the second year in a row, and I think the thesis behind that is the U.S. is really [centered] on seven stocks.

The "terrible" investor sentiment for international stocks has created a promising buy-in point for investors, said the strategist. He noted Germany, the regions largest economy and manufacturing powerhouse, is now undergoing a recession . The ongoing war in Ukraine, fiscal austerity measures and pandemic aftermath have dampened the performance of broader indices — but the average stock in Europe is doing better than in the U.S., the strategist said. "Expectations are very low.

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