Kenneth Fisher is high on America. He’s just not overly keen on its stocks right now.
Fisher notes in a recent Forbes column that America accounts for 23% of global GDP, but is home to 28 of the world’s 50 biggest stocks. “American markets have outpaced foreign ones for seven years,” he says. “These things fluctuate.”
Fisher says America does have some advantages over other countries, which is particularly relevant in the tech sector. “But we’re still too popular,” he writes. “America grouses about itself endlessly. The market simply hasn’t. Over rolling long periods U.S. and non-U.S. stocks tend to equalize. Foreign’s time approaches. Prepare now. … Our world is only 55% U.S. stocks. Even if you’re bullish on America, and I still am, you should be at least 30% foreign.”
Fisher discusses some of his favorite foreign plays, including France’s Sanofi.