7 days ago • 1:16 min
If you want to find the thriftiest bargains, you’ll usually have to do some digging. That applies to investing too: US stocks might have fallen this year, but they’re still far from a steal when you factor in that super low interest rates were keeping them at relatively expensive prices before that.
Now, rising rates are set to pull down US stocks for some time. But that’s not the case everywhere: Japan’s interest rates are unlikely to rise at such a rapid pace, and the country’s stocks are currently sitting near the tenth percentile of their 20-year valuation range. Just check out the chart above, and you’ll see how much cheaper Japanese and European stocks are than US ones – which, by the way, are currently hovering near the seventy-fifth percentile.
Goldman Sachs believes you could be
It’s a shame everything else is still rising.
It sees the shiny metal topping other assets next year – and it’s easy to see why.
Why US small-cap companies might be a good opportunity now.