Time to Take Advantage of Rich U.S. Stock Valuations?

The video discusses the current state of US stocks compared to global equities, highlighting concerns like Brexit and eurozone stability. It examines the high valuation of US stocks, driven by investor confidence and the shift from bonds to equities. The video also explores investment strategies, emphasizing the importance of dividend yields in international markets. It warns against balance sheet engineering due to low interest rates, advocating for a focus on cash earnings and free cash flow as indicators of company health.

What are some of the concerns affecting global equities as mentioned in the video?

• Brexit and eurozone stability

• Middle East conflicts

• U.S. inflation rates

• China's economic slowdown

Why might international markets be considered more attractive than U.S. markets?

• Better technological advancements

• Lower political risk

• Stronger economic growth

• Higher dividend yields

How are U.S. equities perceived in the context of global markets?

• As a safe haven

• As less profitable

• As a high-risk investment

• As undervalued

What is a potential risk of low interest rates for companies?

• Decreased consumer spending

• Increased competition

• Capital misallocation

• Higher tax rates

What financial metric is considered a reliable indicator of a company's health?

• Earnings per share

• Free cash flow yield

• Market capitalization

• Revenue growth