US market attractive in tough times
A generally riskier investment environment is likely to make the US stock market a more attractive proposition for investors over the remainder of 2008, according to a leading US equity strategist.
The chief US equity strategist at JP Morgan Securities, Tom Lee, told the Reuters Investment Outlook Summit in New York that the US stock market would likely outperform all other global indexes this year as a riskier investing environment will make its relatively low valuation and heavier volume more attractive.
“I think the US is looking as the least risky equity class,” he said. “US stock markets are the most regulated compared to their overseas counterparts, and that should provide comfort for investors as turmoil in global financial markets hurt corporate balance sheets.”
Lee said in volatile times disclosure was important and that this had been recognised by major investors, such as hedge funds.
Looking at emerging markets, Lee said that the picture was less clear-cut, with the same inflation that had impacted US households for the better part of 12 months now impacting emerging markets.
AUTHOR
Mike Taylor
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