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Q: Why is the earnings multiple of foreign stocks so much lower than U.S. stocks, and is that an opportunity to shift some assets to foreign?
A: Lower earnings multiples in foreign markets reflect various factors, including differing economic growth rates and regional risks, but they can also signal attractive valuation opportunities. Shifting a portion of assets to foreign stocks provides diversification and potential growth as these regions recover. For clients, this can mean accessing global growth without overpaying on valuation.
International and Global Models:
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