Attractive returns and the breadth of opportunities are among the many reasons the U.S. has long reigned supreme for investors. However, according to one strategist, a different market has much better valuations right now. “The U.S. is relatively expensive. In terms of countries, Japan looks to offer the best combination of earnings growth, cheap valuations and policy support,” Tom Stevenson, investment director at Fidelity International, told CNBC Pro. “Japanese shares are trading on around 15 times this year’s expected earnings and 14 times earnings two years out,” he said. “There has been some increase in this multiple during the recent rally in Japanese shares, but they remain relatively cheap compared to the U.S. which trades on around 20 times earnings.”
