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Why is everyone dissing U.S. investments

After some 20 meetings in the last month with professional investment consultants I am left wondering why everyone is so focused on bond investing and going international.

I understand that the current expectation for U.S. growth is less than 3% and emerging market growth rates will likely be 2 to 3 times higher.  This isn't new news and is reflected in the current market multiples for BRIC countries and other emerging markets.

With 40% of U.S. earnings coming from overseas their is exposure to foreign markets for purposes of top line growth.  The recent strength in the dollar can not be viewed as long term given the current policies of the Administration and Congress.  There is no doubt that current estimates of future deficits are probably overblown. These estimates are tied to the current level of economic activity and the government forecasters such as the CBO and OMB generally use current data to far into the future.  Still deficits will mount and debt will climb meaning that there is no way dollar strength will continue unabated.

With yield spreads extremely tight, foreign markets overvalued it seems the right time for domestic equities.  Yet the common convention is to move away from them.  Everyone in the institutional consulting world seems to count the domestic equity market out.

This thought process has led most to miss a substantial portion of the rebound rally of the last 13 months.  Let's hope they aren't counting the U.S. corporation out altogether. 

Disclosure: "no positions"