Europe & Japan Offer Better Value than Streaking U.S. Stocks

U.S. equity indices may be rallying to new highs, nevertheless, better values can be found in foreign markets, said Leila Heckman, managing director of International Research at Lebenthal Asset Management. Heckman said continental European stocks offer more attractive valuations, especially the southern European countries like Spain and Portugal which fell furthest during the financial crisis. As for emerging markets, Heckman said many could see economic headwinds so investors need to beware value traps. Finally, Heckman said she likes Japanese stocks on a relative basis, but would not seriously overweight an allocation as it struggles to weaken its currency.