Global stocks are lagging behind U.S. shares, illustrating how investors’ faith in the domestic economy continues to drive a growing divergence in financial markets. Despite expectations that cheaper parts of the market will narrow the yearslong gap, investors remain willing to pay a premium for domestic assets. The trend shows how steady consumer spending and strength in the labor market keep supporting U.S. stocks despite fears of a recession and outsize moves toward haven assets like bonds and gold.

Our CIO Benjamin Lau commented on this trend in an article reported by The Wall Street Journal. Here is an excerpt:

“The economic growth justifies being more optimistic on stocks than bonds at this point,” said Benjamin Lau, chief investment officer of Apriem Advisors. In recent months, he has been buying shares of companies that appear cheaper in the health-care, semiconductor and industrial sectors.

You can read the full article here.