Look Overseas For Value Investing, Says Oppenheimer Strategist

Investors looking for the most compelling opportunities on a valuation basis should be looking "outside the U.S.," according to Oppenheimerfunds' Brian Levitt.

The Analyst

Brian Levitt, senior market strategist at Oppenheimerfunds, discussed global investment opportunities on "Bloomberg Surveillance" Monday.

The Thesis

From a strict valuation perspective, the international markets offer investors the best value at a time when the U.S. economy is likely to show signs of slowing down as a result of mounting tariffs, Levitt said during the Bloomberg interview.

Investors will "awaken" to the reality that international markets aren't as bad as many think, he said. 

The long-term big growth stories coming in many emerging markets aren't going away, Levitt said. An example: there are 400 million millennials in China who are gravitating toward online shopping and downloading apps, and this reality won't be impacted by any trade war, he said. 

Investors with a focus on U.S. opportunities face risks on two fronts, Levitt said:

• The Federal Reserve is committed to gradually lifting interest rates, and although it bought itself "a little bit of space" with the recent increase in the 10-year yield, at some point the Fed needs to flatten the yield curve, Levitt said. While this may not be a 2019 event, the risk will persist moving out into 2020, in his view.
• The continued strengthening of the U.S. dollar could slow economic activity and lower domestic economic growth to levels similar to what's seen in international markets.

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