Investors who are nervous about recent market volatility should consider the overall composition of their equity portfolio. Although U.S. stocks are near a record high, other areas of the financial markets are far below peak levels.
U.S. stocks have fared exceptionally well in recent years, and valuations remain somewhat elevated, even after the recent 9% decline. However, foreign stock markets remain well below their peak levels of 2007, and in many cases exhibit valuations that are attractive by historic standards.
Low valuations may serve to cushion downside risk in certain foreign markets, and could set the stage for attractive long-term returns.
Investors who focus solely on the performance of the U.S. stock market may overlook this important dynamic within their portfolios.
DISCLAIMER: Past performance does not predict future results. This report is based on data obtained from sources we believe to be reliable. Hefren-Tillotson does not, nor any other party, guarantee the accuracy or completeness of this report or make any warranties regarding results obtained from its usage. All opinions and estimates included in this report constitute the firms judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation to buy or sell the securities herein mentioned.