What's Next For International Equities?

Why International

• Europe has delivered equivalent earnings growth to the U.S., while Japan has generated even higher rates, in both USD and yen terms.  See chart below.
• EPS is the primary driver of equity returns
• Yet U.S. valuations remain at a large premium to those of Europe and Japan
• Europe is planning to inject a massive €500 billion into defense spending, with a multiplier effect likely to benefit non-defense industries.
• Japan is embracing inflation, with the BOJ initiating a rate-hiking cycle—a stark contrast to its decades-long deflation struggles.

Source: Bloomberg
Past performance does not guarantee future results.

Source: Bloomberg

Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than quoted. 

Additional risks are associated with international investing, such as currency fluctuations, political and economic stability, and differences in accounting standards.