Amid record-high markets, six Wall Street strategists shared where they would deploy $10,000 right now, identifying areas ranging from artificial intelligence to emerging markets, according to Business Insider.
Experts say there’s still opportunity across various asset classes, including U.S. and global equities, small-cap stocks, and dividend-paying stocks.
J.P. Morgan Asset Management Chief Market Strategist for the Americas Gabriela Santos said that she would allocate $7,000 to developed-market ex-U.S. equities and $3,000 to emerging markets, pointing out that U.S. stocks now trade at roughly a 35% premium to international peers—much higher than their historical 15% premium.
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“After 15 years of disappointment, it’s really been all about international equities this year — huge outperformance, and something we see as just the beginning,” Santos told Business Insider.
She added that a weaker U.S. dollar and growing investor interest in global markets support this shift. Santos cited the Vanguard FTSE Developed Markets ETF (NYSE:VEA) and iShares MSCI Emerging Markets ETF (NYSE:EEM), which were up 19.7% and 18.6%, respectively, as of last week.
With tech stocks dominating market headlines, Stifel Financial Corp (NYSE:SF, SFB)) Chief Equity Strategist Barry Bannister is steering in a different direction. He recommends spreading a $10,000 investment equally across small-cap, international, and value stocks to offset tech-sector concentration, Business Insider reported.
“Right now, the market’s obsessively focused on tech. But it’s hard to run an economy on seven stocks,” Bannister said.
He highlighted the concentration risk in the tech sector and pointed to the Vanguard Value ETF (NYSE:VTV), iShares Russell 2000 ETF (NYSE:IWM), and iShares MSCI ACWI ex U.S. ETF (NASDAQ:ACWX) as preferred picks for diversification—and said he’s recently adopted the approach himself using fresh capital received in May.
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Haverford Trust Chief Investment Office Hank Smith recommended a two-part allocation: 50% to 60% in an equal-weighted S&P 500 ETF such as the Invesco S&P 500 Equal Weight ETF (NYSE:RSP) and 40% to 50% in a cap-weighted index such as the Nasdaq 100.
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