International exchange traded funds (ETFs) have outperformed the broad U.S. market ETFs for the last several years, however valuations between the U.S. and foreign markets are narrowing. Carl Delfeld of Chartwell Advisors looks at reasons to be confident in America’s future and sees a possibility of a balance between U.S. and international markets. He sites the example of iShares S&P Global 100 (IOO), which gives investors exposure to 100 of the largest companies in the world. Of those companies, 50% are American.
Here are some of the reasons why Delfeld is optimistic about America:
- America accounts for about 23% of world GDP;
- America has the most liquid capital markets (NYSE listed companies have a value of $15 trillion, three times that of Japan, the nearest rival);
- In the past 20 years, 30 million new jobs were created in the U.S. and net zero in Europe;
- Largest global market share of manufacturing;
- As emerging competitors like China and India catch up, the American economy is proving it can hold its own;
- America is a safe haven for investors, and the political system is transparent and stable;
- America has the ability to renew and reform itself and the commitment to freedom and innovation will keep the country on top.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.