August 2023 | As global markets react to central banks’ efforts to control persistent inflation, the opportunity set is changing across international equities. In our view, there are several underlying reasons to be optimistic about equity markets outside the US. Meanwhile, due to several factors, including recent significant stimulus and hopes over artificial intelligence, a handful of US stocks are experiencing significantly high valuations. In order to diversify their investments and find new opportunities, investors can consider incorporating global equities into their portfolios.
01 | We believe the US economy is positioned to experience a prolonged slowdown and possibly a recession.
02 | US equity markets appear expensive relative to other markets and to their own history.
03 | With inflationary pressures likely to remain higher for longer, investors may be able to benefit from expanding the global reach of their portfolios.
Unless otherwise stated, all information contained in this document is from Amundi Asset Management US (Amundi US) and is as of August 16, 2023. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi US and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results. Amundi Asset Management US is the US business of the Amundi Asset Management group of companies.
