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Investors looking for stock investments on the cheap should look abroad, according to Schroders investment strategist Bob Armstrong. Europe's Stoxx 600 index and the Japanese Nikkei 225 hit record highs earlier this year, along with the S & P 500 . FactSet data shows the former trades at 15 times trailing 12-month earnings, while the latter has a multiple of 23. The S & P 500, meanwhile sports a 27 times earnings multiple. Year to date, the Nikkei is up nearly 20%, outpacing the S & P 500's 17% jump.
Persons: Bob Armstrong, Europe's, Armstrong, Armstrong didn't Organizations: Nikkei, CNBC, Tokyo, European Central Bank and Bank of England, Franklin FTSE United Kingdom ETF Locations: U.S, Europe, Armstrong, Russia, Ukraine, Japan
And the implications don't just stop there — Armstrong believes that "virtually all assets" will feel the pain. Opportunities also exist within fixed income and commoditiesWith equities taking the spotlight in the prior regime, fixed income may have slipped under the radar for many investors. But now, Armstrong believes that the way in which investors think about fixed income needs to change. "So history would tell you that now is a decent time to be allocating to high-quality fixed income." In an environment with sticky inflation, commodities would serve investors well as a good inflation hedge and portfolio diversifier.
Persons: Schroder's Bob Armstrong, Bob Armstrong, Armstrong, — Armstrong Organizations: US, outperformance, Commodities
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