Major Wall Street investment providers expect non-U.S. stocks to outperform U.S. stocks in the intermediate term, Morningstar investment specialist Susan Dziubinski writes in a new blog post. Dziubinski cites research by her colleague, personal finance director Christine Benz.
Each year, Benz amalgamates investment firms' capital market assumptions for the next seven to 10 years. She notes that firms use different methodologies to arrive at their equity forecasts, but most employ some combination of current dividend yields, valuation and earnings-growth expectations.
These forecasts, she says, will mean most for investors whose time horizons fall in that time period, or for new retirees who face sequence of return risk in the next decade.
For those investors who want to increase their exposure to non-U.S. stocks, Dziubinski lists 10 names from Morningstar Global Markets non-US Moat Focus Index that looked undervalued as of Jan. 15.
See the accompanying gallery for the 10 best undervalued international stocks to buy now. One-year performance is as of Jan. 22.
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