Making a case for investing in pricey US stocks

As we come to the end of the second quarter earnings season, both in the US and across Europe, the case for owning US listed equities over European stocks continues to strengthen.

Management teams across the US indicated in their results releases and subsequent conference calls that while global growth remains well below desired levels, it is a macro environment that has persisted for some time and companies have had to get used to it.

The outlook for the remainder of 2016 is for sluggish economic growth but from which corporates have continued to adapt through cost cutting and reduced capital expenditures, and deploying cash towards share buyback programmes.