Global vs US markets

Since the presidential election, global stock markets have been consolidating.  They’ve been trading in a tight range since summer and peaked in September.  The money question is are they about to break up or down?

Pros-

  • Most global stocks are trading at much lower valuations than the US.
  • Rising US Dollar will make foreign products more competitive

Cons-

  • Global growth has cooled to 3% and doesn’t look like it’s bottomed yet
  • Rising US Dollar denominated debt is increasing costs for Emerging Market borrowers
  • Rising oil prices might hurt manufacturing nations more than it helps OPEC
  • Trump’s impact on global trade

I’m watching global markets closely, but not ready to jump in yet.  Stay tuned for my foreign ETF picks.

 

If you missed yesterday’s article on Bond Losses you can read it here:

Bond Funds are Losing Money

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