Rod Smyth, chief investment strategist for Wachovia Securities, told CNBC’s “Squawk on the Street” that some overseas stocks offer greater growth prospects than their U.S. counterparts.
“I think the most important thing that investors have to get their mind around is simply this: Is there going to be a recession in the next couple of years?” Smyth said Thursday. “We know the economy is slowing down. History tells us mid-cycle slowdowns are very good for stocks and that recessions are bad for stocks. If you can get your mind around the fact that we’re in a mid-cycle slowdown then you want to put money to work.”
He said investors shouldn’t be put off by the low multiples offered by many overseas stocks.