NOV 2025 | 2 min read 

Looking beyond the US for investments

Dan Farmer, Chief Investment Officer

The United States has a strong stock market that attracts investors from around the world. It’s a leader in exciting areas like artificial intelligence, robotics, and space exploration. But right now, US stocks are expensive, which means they might not give such great returns in the future.
 

Why are US stocks expensive?

The US market relies heavily on a few big companies, like Apple, Microsoft, Alphabet (Google’s parent company), Amazon, Meta Platforms (Facebook’s parent company), Nvidia, and Tesla, often called the Magnificent Seven.

These companies have driven most of the market’s growth recently, but their high prices mean they need to keep performing exceptionally well to keep growing. If they don’t, their share prices could weaken.

The rest of the US market is also pricey compared to its history, and many companies aren’t growing as fast as the Magnificent Seven. This makes us cautious about expecting big returns from US stocks right now.
 

Looking at other countries

We think there are better opportunities outside the US, especially in emerging markets like China and other Asian countries. These markets are cheaper, meaning you might get more value for your money. For example:

• China is growing in areas like electric cars and green energy, offering exciting investment possibilities.
• Technology in emerging markets is strong but costs less than US tech stocks.
• Healthcare in these markets is innovative, with companies developing new drugs quickly.
• Commodities like copper and cocoa are in demand, helping countries that produce them.

Emerging markets can be riskier, with more ups and downs, but their lower prices make them worth considering.
 

How we are managing our customers’ investments

We’re being careful but still open to taking some risks. Here’s what we’re doing:

• Investing more in countries outside the US, especially emerging markets, to find better value.
• Avoiding some bonds (bonds are loans related to borrowings by companies and governments) because they’re not offering great returns right now.
• Looking at real estate, like warehouses and shopping centres, where we can buy at good prices and add value.
• Keeping bond investments, we do make, short-term, to prepare for changes in the economy.

We take a long-term approach, making small adjustments over time. We also plan for different possibilities in the economy.