Thornburg Investment Management believes that elevated U.S. equity valuations may limit future returns, prompting investors to consider global markets. The firm highlights that while U.S. stocks have outperformed for over a decade, valuation gaps between the U.S. and international markets are historically wide.

“While we are not forecasting the near-term direction of U.S. equities, elevated valuation metrics suggest that the exceptional returns of recent years are unlikely to persist. Investors should prepare for a more tempered return environment over the next decade,” says Matt Burdett, Head of Equities at Thornburg.

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