Research Affiliates: Re-Balancing Outside the U.S. Towards Europe

The video discusses the valuation of the US market, highlighting its high Shiller PE ratio and potential for negative real returns. It contrasts this with the promising returns expected from emerging markets. The impact of a stronger US dollar and economic growth trends are analyzed, with a focus on the global recovery from COVID-19. The video also explores the implications of potential tax changes and shifts in market participation. Finally, it identifies opportunities in Asian emerging markets, particularly in countries managing COVID-19 well and benefiting from semiconductor demand.

What are the expected returns for U.S. market investors over the long term?

How do emerging markets compare to the U.S. market in terms of expected returns?

What factors are influencing the cyclical sectors in the current market?

What is the potential impact of a stronger U.S. dollar on the market?

What opportunities are emerging in the market due to anticipated capital gains tax changes?

How might tax hikes affect corporate earnings according to the discussion?

Which countries are highlighted as performing well in terms of containing the virus and economic recovery?