The smart money is hedging against the United States

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CHICAGO, ILLINOIS - JUNE 04: Jerome Powell, Chair, Board of Governors of the Federal Reserve listens to speakers during a conference at the Federal Reserve Bank of Chicago on June 04, 2019 in Chicago, Illinois. The conference was held to discuss monetary policy strategy, tools and communication practices. (Photo by Scott Olson/Getty Images)

Wall Street is giddy about the possibility that the Federal Reserve could lower interest rates as soon as July. The S&P 500 traded at an all-time trading high Thursday. But some experts think it’s time investors look outside the United States.

“There are bigger and better opportunities in emerging markets like China and India,” said Chris Gaffney, president of world markets for TIAA Bank.

Gaffney said that is partly because valuations for stocks in those markets are more attractive than in the United States. The S&P 500 (SPX), after all, is now up 18% this year while the Nasdaq(COMP) has soared more than 20%.

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