US stocks likely in a bear market now vs. SE Asia a good place to be.

PaulRen's picture

US stocks in a bear market -not likely to end soon.  SE Asia a good place to be but selectivity is key vs. just broad ETF's.

Lots of postings and comments lately by investor pro's on USA stocks getting slammed and where the bottom may be etc...I think most of these are still "in denial", thinking the right investment approach now is to find a US stock market bottom -and start buying the dips.  This worked for years, but for now that is past!  Of course there will be bear market rallies and bounces, but these are very dangerous as they suck investors thinking the worst is over, only to in time see further lows, I dare to here predict.  Rising US interest rates, enormous US Govt. dept (on top of Ukraine war getting another 33 Bill US$), inflation and deceleration of earnings, besides overvaluation are the key drivers of a lethargic to stay US stocks market.  Bonds are also not a place to hide as these drop in mkt. value, as interest rates rise. 

IF you read the new book "The War on the West", by Douglas Murray, one further understands that society's increasing shortcomings which have emerged and brewed-up in developed markets, mostly lead by the US and AU.   

Its high time to get beyond investing in N. America .  Bloomberg today:   "Asia Stock stars may see more tailwinds even as world tightens" showing an interesting graph of SE. Asia stocks diverging of late! See graph below.   So very different from the past.   OF course its more critical then ever to get your Thai companie's right,  i.e choices which see rising earnings, are defensive and well removed from well, the West. 

Paul A. Renaud.