“Over the next seven years,” UBS wrote, “we expect higher long-term returns outside the United States.” The report also said that U.S. stocks traded in line with their trailing price to earnings (P/E) ratio over the past thirty years while the global index now trades “at a 20 discount.”
As important as diversifying and not letting the noise of trade disputes and volatility upset investors, says UBS’s Tom Naratil, co-president of Global Wealth Management, is keeping emotions out of investing.
“Clients are human; it is important to understand how you can keep emotions out of decisions,” he said. “We must help them avoid the mistakes; this is the most important advice we can give our clients.”