|Templeton Global Equity Group
Value Update: Where Is the Next Pocket of Opportunity?
Summary: Domestic value stocks have outperformed over the last 18 months, but more attractive opportunities are coming to light. The Templeton team believes that cheaper valuations outside of the US create an opportunity for achieving greater returns overseas. The current cycle-adjusted price to earnings in the US is 25 while it is only 11-12 in both Europe and emerging markets. Non-US equities look to be undervalued, under-owned, and exposed to positive global economic catalysts.