Kaissar: U.S. Investors’ Home Bias Not Justified

“Despite all the attention heaped on U.S. stocks this year,” writes Bloomberg’s Nir Kaissar, “there’s been more to cheer overseas.” Kaissar explains that, even though data shows that overseas stocks are outperforming, U.S. investors suffer from “home bias”—that is, they are more comfortable with companies “in their own backyard than in far-off locales, so that’s where they park their money.” These investors focus on domestic market gauges (such as the Dow and the S&P 500),… Read More

Arnott Says U.S. Stocks are “Dead Money”

The founder and CEO of Research Affiliates argues that investors should load up on emerging market  stocks and sell off overpriced U.S. equities, according to a recent Barron’s article. In a recent interview, Arnott shared his insights on the subject: Should an investor make emerging markets a larger part of their portfolio? It depends on their level of risk tolerance, Arnott says. For instance, if an investor becomes “panicky” if share price gains are not… Read More

Bloomberg: It Could Be Time to Run with the Bulls

The election of Emmanuel Macron as French president should be the “signal for equity investors to take advantage of a less febrile political environment and buy European stocks,” according to a Bloomberg article from earlier this month. For the past year or so, the article says, economic growth in the euro zone has matched that of the U.S.: The article cites data from Morgan Stanley indicating that first-quarter results submitted by more than 250 companies… Read More