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U.S. stocks showing strength

Speaker:
Joyce Gordon
Title:
Porfolio counselor
Based in:
Los Angeles office
Investment experience:
32

JOYCE GORDON: It’s a very good time for equities in the U.S. We’re still seeing housing improving, and I think there’s still a lot of room for that to run. Auto sales are still fairly strong, and I think that they continue to stay strong. Industrials are gaining strength.

We’re seeing dividends rise, and rather than one sector that’s going to be propelling the economy, I think you just see it a little bit everywhere, where we see a little bit better hiring trends. And I don’t think we’re at the point yet where inflation is going to creep back in.

The U.S. market is up a lot, but we’re not trading at a very lofty price/earnings multiple. We’re trading [approximately] 16 times. And I don’t think that earnings are vulnerable for the U.S economy. I see them continuing to grow and bringing with it dividend growth, which is a good underpinning for the valuations in the market.

It feels pretty good for the U.S. However, there are some areas within the U.S. that are at lofty valuations. If you look at consumer staples and utilities in the U.S., they’re not really in unchartered territory, but they’re awfully high given their history. So we just dig a little deeper — find other companies in other industries that offer more value — and we look globally, too.


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The statements included here are the opinions and beliefs of the speaker(s) expressed at the time the commentary was recorded and are not intended to represent those persons' opinions and beliefs at any other time.