Three things to note on non-USA stocks:
- After a long and painful period of relative underperformance, non-USA equities relative and absolute level of valuation is very attractive.
- A weakening US dollar + China better + emerging market equities better + US small caps better is often the path to a broader market recovery. Those trends are developing at present and should not be ignored. Charts don’t lie.
- On a relative basis, non-USA stocks are breaking out at a pace not seen since late 2008/early 2009…..at the very darkest moments of the Great Financial Crisis. The chart below captures the recent breakout – it’s underway and should not be ignored.
We continue to believe that what will work coming out of this extended period of market volatility will be very different than what has worked the recent past. We have been adding and will continue to add to non-USA equities in portfolios/strategies. In the US, small cap equities and more value > growth is our best idea.
Richard Barrett
Chief Investment Officer
Congress Wealth Management LLC (“Congress”) is a registered investment advisor with the U.S. Securities and Exchange Commission (“SEC”). Registration does not imply a certain level of skill or training. For additional information, please visit our website at congresswealth.com or visit the Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov by searching with Congress’ CRD #310873.
This note is provided for informational purposes only. Congress believes this information to be accurate and reliable but does not warrant it as to completeness or accuracy. This note may include candid statements, opinions and/or forecasts, including those regarding investment strategies and economic and market conditions; however, there is no guarantee that such statements, opinions and/or forecasts will prove to be correct. All such expressions of opinions or forecasts are subject to change without notice. Any projections, targets or estimates are forward looking statements and are based on Congress’ research, analysis, and assumption. Due to rapidly changing market conditions and the complexity of investment decisions, supplemental information and other sources may be required to make informed investment decisions based on your individual investment objectives and suitability specifications. This note is not a complete analysis of all material facts respecting any issuer, industry or security or of your investment objectives, parameters, needs or financial situation, and therefore is not a sufficient basis alone on which to base an investment decision. Clients should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this note. No portion of this note is to be construed as a solicitation to buy or sell a security or the provision of personalized investment, tax or legal advice. Investing entails the risk of loss of principal.
Comments are closed.