Debunking The Reasons To Go All-In On U.S. Stocks

  • 📰 Forbes
  • ⏱ Reading Time:
  • 38 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 53%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

The U.S. market appears expensive, yet many investors miss an opportunity to diversify globally. We explain the benefits.

. An important one is the current rich valuations of U.S. stocks. The U.S. market currently trades at 20x-30x earnings depending on whether you look at recent earnings or a longer run of history. The more you pay for a stock relative to its earnings, the more expensive it is.The current U.S. valuation is pretty high compared to the past century. It's more frequently been at half the current level. Also, if you think the U.S.

This means if you put a dollar into a global fund, more than half of that money will be invested in the U.S. In recent history the U.S. share of global markets has moved around and sometimes been closer to 40%. That's a lot lower than current levels. You could consider managing your own U.S. exposure by combining owning a global fund and a U.S. market tracker. By blending these two funds in a portfolio, you can make sure the U.S. exposure is where you want it, rather than drifting with current valuations.Another way to think about the U.S. market weight of approximately 55% is to compare it with other metrics. The U.S. represents, which is a measure of economic activity. The U.S. also has around 5% of the global population.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 394. in ZA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stocks struggle for direction as uncertainty rises around U.S.-China trade talksTrump's idiotic trade war handled like a rookie without a clue. Ah everyday News. As soon as not 25% taxes. Fine. Keep going to 2020 over
Source: MarketWatch - 🏆 3. / 97 Read more »

China’s Night Traders Are Moving U.S. StocksWhen a U.S. activist fund accused Chinese retailer Pinduoduo of inflating its sales, shares in the Nasdaq-listed company jumped. One reason: a growing horde of Chinese investors who are contributing to large price moves and unusual trading patterns in some U.S. stocks. Chiconowar.
Source: WSJ - 🏆 98. / 63 Read more »

U.S. stocks rise as investors keep wary eye on Boeing, Brexit developmentsU.S. stocks rise Wednesday, putting the S&P 500 and the Nasdaq on track for a third straight day of gains, as investors weighed conflicting data on the U.S. economy with concerns tied to the U.K.’s exit from the European Union.
Source: MarketWatch - 🏆 3. / 97 Read more »

JP Morgan is about to launch the lowest-fee US stock market ETF yetJ.P. Morgan is about to launch a broad US stock market exchange-traded fund that charges two basis points, beating out ETFs by Schwab, Vanguard and BlackRock. Tax each wall St transaction. taxtherich just say J.P. Morgan is launching a scam.. dont get all fancy with your words. lol It's ok don't be embarrassed that your promoting garbage and a criminal organization, its the information you have. Is it the stuff-we-cant-get-anyone-to-buy ETF?
Source: CNBC - 🏆 12. / 72 Read more »

Reports of a possible halt in US-North Korea talks send defense stocks soaringNorth Korean Vice Foreign Minister Choe Son Hui said at a news conference that her country has 'no intention to yield' to demands made by the U.S. Yeah. Daddy Warbucks. Make little orphan annie look like fearless buffalo stance.
Source: CNBC - 🏆 12. / 72 Read more »