Pennsylvania Trust

Global Rotation? Trade Hopes Appear To Be Raising Global Spirits

Global Rotation? Trade Hopes Appear To Be Raising Global Spirits

While three months is certainly too short of a period to set a trend, three things are worth pointing out:

  1. International stocks (still) appear cheaper than U.S. stocks (based on a comparison of forward p/e) (Chart 1)
  2. Internationally-focused ETFs took in $2.16 billion last month, while investors redeemed $5.13 billion from U.S. ETFs.
    • Emerging markets ETFs and funds had their largest inflow of the year last week as investors continue to position for a trade deal between the U.S. and China.
    • In the U.S. value-focused ETFs continue to see better flows than growth ETFs.
  3. International markets have outperformed the USA for the past three months (chart 2)

Chart 1

 

Chart 2

 

Chart 3

 


Disclosure: This Commentary represents a review of topics of possible interest to Pennsylvania Trust’s clients and is not personalized investment advice. It contains Pennsylvania Trust’s opinions, which may change following the date of publication. Information obtained from third-party sources is assumed to be reliable but is not guaranteed. No outcome – including performance – is guaranteed, due to various uncertainties and risks. This document is not a recommendation of any particular investment. Investment decisions for clients are made on an individualized basis and may be different from what is expressed here. Past performance is no guarantee of future results.