ETF Trends publisher Tom Lydon appeared on Fox Business Network’s Mornings with Maria on Tuesday to discuss 2018 investing opportunities.
With U.S. markets continuing to hit highs, Lydon discussed where the opportunities are in the markets.
“A great litmus test is the ETF marketplace and you can continue to see huge flows,” Lydon said. “We had record breaking flows last year – $465 billion just in the U.S. – surpassing the record the previous year of $320 billion.
“If the average American continues to add money, that’s something that’s very positive for the stock market. We don’t see things slowing down any time soon, especially as you look at the first two weeks.”
Asked where investors should be putting their money, Lydon said many should look overseas.
“Unfortunately the average American has a home country bias,” he said. “It feels real good here in the U.S., but overseas, developed markets have done much better last year than the U.S. did. When you look to emerging markets, not only has the performance been there, but from a valuation standpoint, the fees are half of what they are in the U.S.”
Lydon added that when people think about emerging markets being risky, “it’s not like it was 10 years ago.”
“They’ve done a great job from a technology standpoint, from an accounting standpoint, and if they want more investment dollars, they are stepping up and having to play the game,” he said. “With that, they are attracting more money.”
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