Is now the time to buy U.S. stocks?
It is if you listen to investors recently surveyed by Bloomberg. Some 40% called the U.S. the world's most attractive market for investment this year. That's pretty shocking given our dour economic outlook, but these things are relative, and many are just freaked out about the potential volatility looming in Europe, China, et al.
This, however, represents an enormous change in sentiment and one that is already creating opportunities for long-term investors. Consider that since the beginning of the year the U.S.-dominated S&P 500 is down 7%, while the global MSCI EAFE index is down 18%. Should the world really be trailing the U.S. by more than 10 percentage points this year? I'm not so sure that's fair.
But what are you doing? Seeking safety in U.S. stocks or opportunistically increasing your global exposure? If you're a contrarian and like to zig when others zag, your approach should probably be the latter.