Looking for the next hot stock investment but looking to save some cash? Look no further than overseas markets, according to investment strategist Bob Armstrong from Schroders. While the S & P 500 has been reaching record highs, the Stoxx 600 index and the Japanese Nikkei 225 are trading at much more attractive valuations. This means there’s a big opportunity for investors to find great investments at a lower price point.
Armstrong is particularly bullish on Japan’s market, noting the country’s emergence from a long bear market and the initiatives taken by the Tokyo Stock Exchange to improve profitability and corporate governance. Year to date, the Nikkei has outperformed the S & P 500, showing great potential for growth.
In addition to Japan, Armstrong sees promise in the U.K. and Europe as well. Despite concerns over geopolitical tensions and a potential energy crisis, these markets have surprised to the upside and offer strong earnings growth potential. With the European Central Bank and Bank of England set to cut interest rates, these markets could receive a boost in the near future.
For investors looking to gain access to these overseas markets, exchange traded funds (ETFs) are a great option. Three examples include the iShares MSCI Japan ETF (EWJ), iShares Core MSCI Europe ETF (IEUR), and Franklin FTSE United Kingdom ETF (FLGB). These ETFs provide exposure to the international markets mentioned by Armstrong and offer investors the opportunity to diversify their portfolios.
At Extreme Investor Network, we believe in providing our readers with unique insights and valuable information to help them make informed investment decisions. Stay ahead of the curve and explore the opportunities available in overseas markets for potential growth and attractive valuations.