With emerging markets looking overheated and Europe still reeling from the effects of the sovereign debt crisis, now could be the time to buy US equities. Investment Week reveals three reasons why.
1. Valuations look good There are currently excellent opportunities to buy great businesses for exceptional valuations, according to John Eisinger, manager of the Janus US All Cap Growth fund. Looking at metrics such as earnings yield on the S&P 500 relative to the treasury yield, the US market is currently trading at valuation levels not seen in 50 years. Eisinger also cites record cash balances on corporation balance sheets as another market driver. “Over time these cash balances will be put to work via increases in capex, employment and M&A or higher dividends and buybacks. Al...
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