Financial expert predicts: US stocks expensive, returns meager - These 4 stock markets promise higher profits

Financial expert predicts: US stocks expensive, returns meager - These 4 stock markets promise higher profits

According to a report from www.boerse-online.de, US stocks are expensive and could only provide very low returns in the future. The renowned financial expert Norbert Keimling has carried out quantitative evaluations and comes to the conclusion that US stocks are overvalued and will only achieve an annual real return of 1.9 percent in dollar terms over the next ten to 15 years. This assessment is based on the price-to-book value ratio and the price-to-earnings ratio according to the method of Robert J. Shiller.

The high proportion of US stocks (68 percent in the MSCI World Index and 60 percent in the MSCI All Country World Index) could be disappointing for benchmark-oriented investors. However, Norbert Keimling offers investors hope by highlighting four cheap stock markets that promise significantly higher returns: South Korea, Brazil, Germany and Japan. These markets could offer annual returns of over eight percent.

South Korea, for example, has an expected return of 10.9 percent per year. The Korea ETF iShares MSCI Korea and the Franklin Korea ETF invest primarily in Samsung Electronics, with the Franklin ETF having lower ongoing costs.

Brazil is mentioned with an expected return of 8.6 percent per year. The Bovespa is the leading index, but the majority of ETF providers now track the MSCI Brazil Index. The Lyxor MSCI Brazil ETF and the Franklin FTSE Brazil ETF invest primarily in financial and commodity stocks.

Germany is mentioned with an expected return of 8.4 percent per year. The iShares Core DAX ETF tracks the DAX one-to-one, while the Vanguard Germany All Cap ETF holds a total of 163 stocks and therefore covers German large, mid and small caps.

Japan is mentioned with an expected return of 8.1 percent per year. The Nikkei 225 is Japan's most famous stock index, while the Vanguard FTSE Japan ETF and M & G Japan are also dedicated to the Japanese market.

The advantages of these four cheap stock markets could provide a good opportunity for investors to further diversify their portfolios and earn lucrative returns. It is therefore advisable to critically examine overvalued US stocks and consider alternative investment options.