In part 2 of this video series, we compare valuations in Asia to the US. While the US has had a full market cycle and earnings have been very strong, in Asia there’s more room for earnings growth.
The US market, with the benefit of tax cuts, is now trading around 17x – 18x 2018’s earnings. Whereas in Asia, we’re seeing a 12x or 13x, so that’s a significant gap.
In summary, Asian markets today are attractively valued relative to US markets and are poised to benefit from several likely tailwinds in the US and global economies.