Three international stocks to consider: CIO
One investing professional says that he sees opportunities in international equity markets, as many investors focus on the U.S. technology sector.
Derek Izuel, the CIO of Shelton Capital, said in an interview with BNN Bloomberg Wednesday that the spread between equity markets in the U.S. and the rest of the world is at historically high levels. He added that in international markets, overall valuations are moving lower toward levels “we haven’t seen since the great financial crisis.”
“There's some tremendous value, on top of that, international markets aren't quite as risky as they used to be. And much of that is because the U.S. market is becoming so concentrated and such a large portion of the global market,” Izuel said.
“So when you have a regional banking crisis or something like that, it puts a lot of risk into the U.S. market. You're not seeing as much of that risk overseas because of the wide diversity of countries and markets, that even emerging markets are about the same risk level as the U.S. at this point.”
Within the international market, Izuel said he likes Swedish steel company SSAB, Toyo Suisan, a Japanese company specializing in ramen noodles, and Itau, a Brazilian firm positioned to benefit from the reshoring of manufacturing.
Shelton Capital owns stocks in all three companies mentioned in mutual funds and Separately Managed Accounts.