The US is no longer the no-brainer investment destination it once was, and stocks in the rest of the world are setting up to be a multi-year trade. The best options will be markets that are cheaply valued, less vulnerable to foreign capital outflows, have low levels of debt, are under-owned and have undervalued currencies. There are several strong candidates.
All good things must come to an end. US stocks have led the global market higher for most of the last 15 years. But there is a loud clunking sound coming from the structural gears that drive global finance as the US renegotiates its postwar contract with the rest of the world.
