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BNP Paribas Asset Management chief market strategist Daniel Morris says while the good news is priced in for US stocks (^DJI,^GSPC, ^IXIC), yet, the market remains his top regional pick.
"All the good news is likely to be priced into US equities and perhaps all the bad news priced into, for example, European equities," Morris says, explaining, "At that point, the marginal surprise really should be coming out of Europe. So, I think that's what we want to be watching for."
The strategist notes, "For the most part, you would anticipate probably still above average economic growth in the US for the next year or so over the long term." He adds, "We're still overweight [for] most US equities because we think the fundamentals support it, and even if it is a consensus trade, that doesn't necessarily make it the wrong one."
He says that exposure to emerging markets can help diversify investors' portfolios, and highlights Asian markets: "Asia clearly also has several semiconductor angles that I think you can look at in the medium term."
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This post was written by Naomi Buchanan.