Morgan Stanley’s Shalett Says Look Abroad to Hedge US Stocks Bet
- Emerging stocks hit record lows against S&P 500 as gap widen
- Shalett recommends looking to Japan, Europe, EM stock markets
Lisa Shalett
Photographer: Christopher Goodney/BloombergThis article is for subscribers only.
It’s time for investors to move away from the view that the US is the only game in town, according to Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management.
The rally powered by artificial-intelligence stocks has helped send the valuation gap between non-US equities and the S&P 500 Index to a 20-year low, turning geographic diversification into an “inexpensive hedge” against a market correction, Shalett wrote in a report Monday.