The bottom line: U.S. equities can move higher in 2015, but as we’ve already seen, the path is likely to be accompanied by much more volatility. In addition, international markets may benefit from less challenged valuations and the tailwind of central bank accommodation. We would not abandon U.S. equities, but this is a good time for investors to ensure that their portfolios are sufficiently diversified outside the U.S.
Source: Bloomberg.
Russ Koesterich, CFA, is the Chief Investment Strategist for BlackRock. He is a regular contributor to The Blog and you can find more of his posts here.