Why this market expert is shifting away from U.S. stocks

With uncertainty on the rise, one top strategist explains why investors should diversify abroad.

Transcript

00:00Looking at allocations between domestic and international investing, it's definitely time

00:06for investors to not be 100% domestic, not be 100% U.S., and maybe look to be 20 to 25%

00:15international. And that doesn't mean emerging markets. It means looking to Europe, looking to

00:21Australia and Japan, some more stable economies out there that are actually showing pretty good

00:29growth and are really good values when we look at P.E. ratios. A balanced portfolio for us,

00:37especially on the stock side, is at least 25% international. Staying primarily in developed

00:46economies, that 25% can be 5% to 10% emerging markets, because I do see tremendous value in

00:54South America, particularly Brazil, but also India. Look at Apple shifting production from China to

01:01India here over the next five to 10 years. But then staying domestic, the U.S. exceptionalism,

01:09I don't think has been whittled away just in the last three months. I think it's here to stay.

01:14We're going to see a dollar reserve currency for at least the next few generations. So domestic

01:20stock market is going to continue to do great. But also looking at bonds, there's a tremendous amount

01:26of value having a good bond allocation, whether that's 20, 30, or 40%, earning 5% to 7% in very

01:33high quality fixed income. Bonds may beat stocks for the next five years.