Schwab: Here's why we're back to 'overweight' on US stocks

Cashin: People pre-hedged the Italian referendum

A year of global tumult ahead will make U.S. stocks attractive compared to their counterparts, according to experts at Charles Schwab.

The firm on Monday raised its view on domestic equities to overweight, an upgrade from the neutral position Schwab has held since 2015. The designation means that Schwab is telling clients to hold more than the usual allocation to stocks.

Interestingly, the move came as markets digested the latest upheaval in Europe, in which Italian voters cast a collective "no" vote on a referendum that would have centralized more decision-making in Rome. The outcome was seen as another victory for a wave of populist fervor sweeping the Continent, though it was tempered somewhat by a pro-European victory for president of Austria.

U.S. stocks gained on the news, a pattern that Jeff Kleintop, Schwab's chief global investment strategist, said could continue. Investors wondering where to go amid geopolitical uncertainty should "refocus back on the U.S." he said.

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