Markets Not in Bubble Territory Despite High Valuations; Latin America an Overlooked Opportunity
-
The S&P 500 is not in a bubble based on valuation measures like the cyclically adjusted P/E ratio and other metrics.
-
Small caps and emerging markets are also not in a bubble, with attractive valuations compared to historical averages.
-
Latin America is an overlooked emerging market opportunity, with positive tailwinds like proximity to the U.S. and abundant natural resources.
-
Index investors may face low single digit returns over the next 5-10 years based on market valuation projections.
-
Long-term quality of life continues to improve globally, but wealth inequality is a concern that historically leads to populism and instability.