Despite gloomy data out of China weighing on the outlook for U.S. earnings, U.S. equities are looking attractive for U.S. investors, Sam Peters, CIO and portfolio manager at global investment management firm Leg Mason Capital Management, told CNBC on Thursday.
“There’s still a lot of innovation going on in technology in the U.S.,” he said, and referred to the current trend in cloud computing – which allows users to access information stored in a central location from anywhere using devices such as a smart phones, tablets or personal computers.
The health care sector is valuable at the moment as well, as emerging market consumption is growing, and as “U.S. health care is exposed to those areas, this sector will be growing,” Peters said.
The CIO also said that financials is the fastest growing sector in the market. “Despite the terrible outlook that is discounted in these names, many of them below book, the earnings recovery that has been going on as credits have been improving in the US, is very powerful,” he said.
“Consistently financials have been one of the faster growing sectors in the markets in the last two years,” he noted, highlighting that a third of S&P 500 earnings growth is seen coming from financials.
Peters also said that despite the fact that retail and institutional investors aren’t buying U.S. equities, cash rich corporations are buying equities at the moment, a movement Citi bank has coined as "de-equitizing."