You are using an older browser version. Please use a supported version for the best MSN experience.

Rough EU Economy Means Stay in U.S. Stocks in 2019, Says Financial Advisor

The news out of the European Union has been bleak of late. For investors wondering if the European Central Bank's patience on rate hikes could be a boon to EU stocks, one adviser says it might be better to stay at home. "We are definitely overweight in the U.S.," said Albert Brenner, Head of Asset Allocation at People's United Advisory. "We think that's the better place to be and that we would caution investors about not buying international solely on the basis of comparative valuations." The average forward price-to-earnings multiple on the EU's Stoxx 600 is roughly 13, below the S&P 500's 16. Brenner also mentioned that interest rates are already so low in Europe, the ECB can't lower them much more, making stimulus --usually good for stocks -- slightly harder to accomplish. As for EU stocks, "we are underweight right now with that allocation," Brenner said. The S&P 500 is up 11.4% this year, and the Dow Jones Industrial Average is up 11.6%, leaving some investors to wonder whether the U.S. can continue its gains for 2019. Watch Full interviews on TheStreet | Subscribe to our Youtube Channel for more videos This video was originally published by TheStreet.

Recent Videos

Featured Partners

image beaconimage beaconimage beacon