Our Current Equity Views

On the basis of our multi-factor framework, we believe that equities remain attractive today, but investors who are underexposed to international stocks should consider increasing their allocations. Specifically, increased exposure to emerging markets and Europe may prove beneficial, given attractive relative valuations and faster economic growth.

The risk in U.S. equities, given currently elevated valuations, is higher than it is in international equities. As such, investors should maintain some exposure to U.S. equities, but proceed with caution. For example, the fleeting rally in small-cap value stocks after the November 8, 2016, U.S. presidential election serves as a reminder that hope is not a strategy. Absent fiscal policy stimulus, like corporate tax cuts, we continue to favor large-cap growth stocks for the time being.

For more details, please read our current views on the equity markets or download the complete Equity Strategy Playbook. And don’t forget to touch base with us in six months for an update and our latest thoughts on global equities.

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