Eric Liu, Portfolio Manager at Harris Associates, adviser to the Oakmark Funds, explains why he sees many value opportunities in Europe – despite a lack of investor interest – and why he is finding far fewer opportunities in Japan. Watch the video for his perspective on:
- Why a wall of money that flocked to US stocks has come out of international stocks.
- Why being underweight international equities, due to historical underperformance, is a mistake for investors.
- Why the opportunity set in international equities is not only larger, but the valuations are significantly lower than they are in the United States.
- How China has been delivering a wall of money to Japan, which is a positive for the region.
- Why it’s still hard to find value in Japan due to the return on equity and a PE multiple that has gone from 12xPE to 16xPE.