U.S. Markets Still Look Best, Fund Manager Says
Scott Reeves
Komal Sri Kumar, chief global strategist for TCW, told CNBC’s “Closing Bell” that for U.S. investors, there’s no place like home.
“Overall, I think U.S. equity markets are much better valued than in Europe,” Kumar said Monday. “In terms of global asset allocation, we have money coming back into the United States, and we like the U.S. equity markets more than any place in the world. But Europe still looks good.”
He said new governments in France and Germany are reform-minded and planned changes are likely to strengthen those economies and reward investors.
“I think the positive impact of their policy changes have yet to take place,” he said.
Kumar said any correction in the Shanghai stock market isn’t likely to translate into a slowing of China’s economic growth or a roiling of global markets for more than a few days.
“The changes that have been made by the Chinese central bank in terms of reserve ratios and increasing interest rates have been marginal, and I don’t think they want to see an economic slowdown before the Beijing Olympics in summer 2008,” he said. “…The slowdown in China is a risk, but I see it as next year’s risk, not necessarily taking place this year.”
