When Nelson previously spoke with Insider in October, he thought foreign stocks — including those in Europe —But surprisingly strong economic indicators in Europe led him to change his view. Although he still can't rule out a global recession, Nelson said he's optimistic about foreign stocks again.
Those modest expectations are reflected in the cheap valuations of international stocks, especially those in Europe, Hill said. He noted that the discount is shown both at an index level with the Stoxx 600 vs the S&P 500 and at the sector and industry levels. "They're still a little surprised that the demand's been a little bit better than what they would've thought," Hill said of international companies."And they're not really seeing the slowdown yet, but frankly, they all still expect it."