Global financial markets are navigating powerful crosswinds in 2018. On one hand, profits for S&P 500 companies have been exceptionally strong, rising 26% over the past 12 months on the back of corporate tax cuts.
On the other hand, markets continue to grapple with uncertainty over trade policy. This is especially true for overseas markets, which have not experienced the same level of profit growth to offset concerns over trade.
On a short-term basis, the underperformance of foreign markets could persist - or reverse - depending on the direction of trade policy. Meanwhile, these markets trade at attractive valuations, suggesting continued long-term appeal despite present uncertainty.
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.