No. of Recommendations: 3
While i agree with everyone about lack of innovation, regulation, corporate governance in foreign markets, wouldn’t you all consider that backward looking? While there isn’t a catalyst in the immediate future, going forward, the valuation spread (US is almost 2x more expensive that foreign) seems a bit extreme. The amount of articles i see about “American exceptionalism” and death of Europe makes me interested. Perhaps even the MAGA movement is the catalyst, forcing other nations to reform and step up.
In the end, the starting earnings yield of 6-7% vs 4-5% is meaningful and allows for upside surprises vs. sky high expectations.
