Tags: Saperstein | Best | Investment | Opportunity

Saperstein: Best Investment Opportunity 'Clearly Lies in the U.S.'

(Dollar Photo Club)

By    |   Thursday, 06 April 2017 01:48 PM

Richard Saperstein, chief investment officer for HighTower Treasury Partners, encourages savvy investors to stay true to America and invest right now in U.S. markets.

“We think the opportunity clearly lies in the U.S. right now,” he told CNBC. “The bottom line is we're not increasing our allocations to Europe right now. Yes, it's cheaper,” he said of European markets.

“Europe is cheaper than the U.S. So 15.5 forward p/e versus 17.5 in the U.S.," said Saperstein, Saperstein, who's ranked seventh on Barron's Top 100 Advisors for 2016

"We look at Europe as being now an asset to U.S. equities versus a liability as it has been for the last few years. So we're looking at it increasing exposure but we don't see us making any big moves,” Saperstein said.

While U.S. investors are being urged to stay true to the red, white and blue, American companies are pursuing a different strategy.

Uncertainty about President Donald Trump’s domestic policies and weak European currencies buoyed outbound dealmaking by U.S. companies during the first quarter of the year, Bloomberg reported.

U.S. acquirers spent more than $70 billion on European targets in the three months to March 31, more than double the amount they dropped in the same period a year earlier and the most since 2007, according to data compiled by Bloomberg. Overall, $179.5 billion of deals involving companies in Europe were announced, the data show, a rise of 28 percent on 2016.

While the value of acquisitions of U.S. targets still outstripped that at $245 billion, those deals fell five percent from the previous year, dragged lower by a paucity of the sort of high-value takeovers that have underpinned a record run of dealmaking since 2014.

“Companies are playing it pretty safe, trimming around the edges rather than going for the large, complex mergers,” said Michael Carr, global co-head of mergers and acquisitions at Goldman Sachs Group Inc. “But the desire is there and management teams are poised to initiate significant transactions -- it’s just contingent on clarity from Washington.”

(Newsmax wires services the Associated Press, Bloomberg and Reuters contributed to this report).

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Richard Saperstein, chief investment officer for HighTower Treasury Partners, encourages savvy investors to stay true to America and invest right now in U.S. markets.
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2017-48-06
Thursday, 06 April 2017 01:48 PM
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