Looking across the pond Looking across the pond http://www.federatedhermes.com/us/static/images/fhi/fed-hermes-logo-amp.png http://www.federatedhermes.com/us/daf\images\insights\video\rope-mooring-yachts-small.jpg November 4 2022 November 4 2022

Looking across the pond

Allow time before setting sail with international opportunities.

Published November 4 2022
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Video Transcript
Question: Are there international opportunities investors should consider?
Phil Orlando: There's no question that the dollar is at historic highs versus a number of our trading partners, the yen, the pound, the euro. But we're also at a very critical inflection point internationally in terms of going into the winter and what the impact of the Russia/Ukrainian war may be on economic growth, food, energy, et cetera. The international markets right now developed are trading about 43% below the valuation of domestic markets. In many cases, valuation could be its own catalyst. But it appears to us that the international markets, particularly Europe, may be going into an inevitable recession given the energy war that Russia and Putin are waging against them. Our view is that while stocks are certainly cheap and the dollar is certainly strong, which makes foreign goods and services more attractive fundamentally, I think we'd wait a little bit longer, allow that recession to actually develop and see how low valuations are and what the clarity on some of those fundamentals are before we begin to significantly invest back into the international markets.
Tags Equity . Markets/Economy . International/Global .

Views are as of the date above and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector.

International investing involves special risks including currency risk, increased volatility, political risks, and differences in auditing and other financial standards. Prices of emerging-market securities can be significantly more volatile than the prices of securities in developed countries, and currency risk and political risks are accentuated in emerging markets

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