Connect with us
Investment expert Doug Fabian shares the outlook for international stock investing in 2017.

archive

Reasons You should Invest in the International Equities Market

Investment expert Doug Fabian shares the outlook for international stock investing in 2017.

In our last issue, we outlined the case for going international with more of your equity allocations. The reasons why were actually quite simple.
First, a strong U.S. dollar is bearish for currencies such as the euro and the yen, and weak currencies in these respective markets are equity bullish.

Second, on a valuation basis, international stocks are relatively inexpensive compared to U.S. stocks. For example, the price-to-earnings (P/E) ratio on stocks in Europe and Japan is, on average, about 12-13. The P/E ratio on stocks in the S&P 500 is roughly about 19. This means international stocks offer a better value proposition than domestic stocks at this juncture.

Finally, after struggling throughout much of the past two years, stocks in the Far East, Europe and Japan all are enjoying technical breakouts. This is true not only for developed international markets, but also for emerging markets.

Take a look at the chart here of the Vanguard FTSE Emerging Markets ETF (VWO). After a sharp post-election sell-off, emerging market stocks are off to a great start in 2017.

vwo

To read the rest of this article, click here.

Written By

Doug Fabian is the editor of Successful Investing and High Monthly Income, and is the host of the syndicated radio show, "Doug Fabian's Wealth Strategies." Taking over the reigns from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbert‚??s Investment Digest. For more than 30 years, Successful Investing (formerly the Telephone Switch Newsletter) has produced double-digit annual gains. Doug has become known for his expert knowledge and timely use of innovative tools like Exchange Traded Funds, bear funds and Enhanced Index funds to profit in any market climate.

Advertisement
Advertisement

TRENDING NOW:

archive

Reasons You should Invest in the International Equities Market

In our last issue, we outlined the case for going international with more of your equity allocations. The reasons why were actually quite simple.
First, a strong U.S. dollar is bearish for currencies such as the euro and the yen, and weak currencies in these respective markets are equity bullish.

Second, on a valuation basis, international stocks are relatively inexpensive compared to U.S. stocks. For example, the price-to-earnings (P/E) ratio on stocks in Europe and Japan is, on average, about 12-13. The P/E ratio on stocks in the S&P 500 is roughly about 19. This means international stocks offer a better value proposition than domestic stocks at this juncture.

Finally, after struggling throughout much of the past two years, stocks in the Far East, Europe and Japan all are enjoying technical breakouts. This is true not only for developed international markets, but also for emerging markets.

Take a look at the chart here of the Vanguard FTSE Emerging Markets ETF (VWO). After a sharp post-election sell-off, emerging market stocks are off to a great start in 2017.

To read the rest of this article, click here.

TRENDING NOW:

THE TRUTH ABOUT GLOBAL WARMING: REAL THREAT OR HYSTERIA?

archive

Dystopia Alert: A Decimating National Debt

archive

Guest Columnist: Why We Must Have a Border Wall

archive

Rising Social Agenda Brings Luster to Qualified Dividends

archive

Connect
Newsletter Signup

Sign up for the Human Events newsletter