Principal Global Investors Says U.S. Stocks Still a ‘Decent Value’

Principal Global Investors CEO Jim McCaughan says most of its investors ‘are pretty confident that U.S. equities remain a pretty decent value’ despite the market’s recent run-up. McCaughan says it’s not just U.S. investors who see U.S. stocks as a good investment. In the latest quarter, McCaughan says Principal Global Investors saw two-thirds of its new business come from non-U.S. sources. McCaughan said, ‘There is a lot of money looking for investment returns and yield in Europe, in Asia particularly, and I would say that those investors are scrambling to get into the market because of their requirement for returns.’ And, he says, ‘if I were to compare this to a baseball game, I’d say, we’re probably in the third or fourth innings of the foreign investor coming into the U.S.' TheStreet’s Rhonda Schaffler has details from the Milken Global Conference in Los Angeles.