International equities: Finding value in Europe vs. Japan

By Eric Liu, CFA®

International equities: Finding value in Europe vs. Japan

Portfolio Manager Eric Liu explains why he sees more value opportunities in Europe – despite low investor interest – than he does in Japan.

Eric Liu, Portfolio Manager at Harris Associates, adviser to the Oakmark Funds, explains why he sees many value opportunities in Europe – despite a lack of investor interest – and why he is finding far fewer opportunities in Japan. Watch the video for his perspective on:
  • Why a wall of money that flocked to US stocks has come out of international stocks.
  • Why being underweight international equities, due to historical underperformance, is a mistake for investors.
  • Why the opportunity set in international equities is not only larger, but the valuations are significantly lower than they are in the United States.
  • How China has been delivering a wall of money to Japan, which is a positive for the region.
  • Why it’s still hard to find value in Japan due to the return on equity and a PE multiple that has gone from 12xPE to 16xPE.
The information, data, analyses, and opinions presented herein (including current investment themes, the portfolio managers’ research and investment process, and portfolio characteristics) are for informational purposes only and represent the investments and views of the portfolio managers and Harris Associates L.P. as of April 16, 2024 and are subject to change and may change based on market and other conditions and without notice. This content is not a recommendation of or an offer to buy or sell a security and is not warranted to be correct, complete or accurate.

There can be no assurance that developments will transpire as forecasted. Actual results may vary.

Investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.

Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during given periods.

The price to earnings ratio (“P/E”) compares a company's current share price to its per-share earnings. It may also be known as the "price multiple" or "earnings multiple" and gives a general indication of how expensive or cheap a stock is. Investors should not base investment decisions on any single attribute or characteristic data point.

Natixis Distribution, LLC (Member FINRA|SIPC) is a marketing agent for the Oakmark Funds, a limited purpose broker-dealer and the distributor of various registered investment companies for which advisory services are provided by affiliates of Natixis Investment Managers.

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