Excerpt from article over the weekend; full link below:
U.S. stocks look to be one of the better asset classes in the world today, particularly blue-chip issues that have lagged small and mid-sized stocks for a decade. Jeremy Grantham, the outspoken co-founder of GMO, the Boston money manager, has predicted that high-quality U.S. stocks probably will be one of the best asset classes in the world in the next seven years, returning nearly 7% a year, after inflation. Grantham has a lengthy record of successfully handicapping asset-class returns.
Overseas markets also look appealing. Major European markets such as the U.K. FTSE 100, France's CAC 40 and Germany's DAX are valued at about 12 times projected 2010 profits and 10 times next year's estimated earnings. European companies often pay higher dividends than their American counterparts and repurchase less stock. The result is that major European markets yield more than 3%, versus the 2% yield of the S&P 500.http://online.barrons.com/article/SB126784011987856735.html#articleTabs_panel_article%3D1