Economics
Commodity Outlook Leads Wells Capital to Favor Non-U.S. Stocks
- Strategist Paulsen expects producers to gain `pricing power'
- Leadership seen swinging to industrials from consumer shares
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It’s time for investors to consider shifting their stock holdings to overseas markets and away from the U.S. in anticipation of a commodity-price rebound, according to James W. Paulsen, Wells Capital Management Inc.’s chief investment strategist.
International stocks usually do better when producers are gaining economic “pricing power” at the expense of consumers, Paulsen wrote yesterday in a report. While that hasn’t been the case the past few years, it’s coming as the pace of economic growth accelerates, the Minneapolis-based strategist wrote.