VEU - VEU: Foreign Stocks Dirt Cheap Vs. U.S. Equities Reiterate Buy
2024-01-24 02:27:27 ET
Summary
- The US stock market now comprises a record 64% of the global equity allocation.
- Vanguard FTSE All-World ex-US Index Fund ETF Shares offers attractive valuation and diversification along with a dividend yield more than two times that of the S&P 500.
- Technically, VEU faces resistance at $57 and is rangebound, but a breakout could lead to a sharp gain.
- I highlight key price levels to watch as somewhat bearish seasonal trends continue into mid-March.
The US is eating the world. Earlier this week, Goldman Sachs reported that the domestic stock market now comprises a record 64% of the global equity arena. I put this to X , and the response suggested trepidation among individual investors. The case was made that some mean reversion could be on the horizon. Still, US bulls point to the dominance of the Mag-7 stocks and tech writ large. Moreover, slugging growth across many non-US economies remains a risk, particularly in China....
VEU: Foreign Stocks Dirt Cheap Vs. U.S. Equities, Reiterate Buy