Kai Lam on BNN Bloomberg: International Markets Trading at a Discount to North America
In a January 2020 appearance on BNN Bloomberg, Kai Lam, Chief Investment Officer at JCIC, discussed the outlook for international equities as the United States and China prepared to sign the first phase of their trade agreement.
Lam explained that reduced trade uncertainty, easing concerns surrounding Brexit and stabilizing economic data from China could improve market sentiment and give companies greater confidence to invest.
International Markets Were Trading at Wider Discounts
At the time of the interview, Lam noted that developed markets outside North America were trading at approximately a 20% discount, while emerging markets were trading at approximately a 30% discount.
European equities were also trading at a wider-than-normal discount compared with their historical relationship to North American markets. Lam believed this was creating potential opportunities, particularly where lower valuations were accompanied by improving growth prospects.
These observations reflect market conditions at the time of the January 2020 interview and should not be interpreted as current market valuations.
JCIC continues to look beyond Canada when building globally diversified investment portfolios, seeking quality companies and opportunities across countries, industries and markets.
Strong Company Fundamentals Still Mattered Most
Lam cautioned that an attractive regional valuation was not enough on its own. With corporate earnings expectations still uncertain, he emphasized the importance of identifying individual companies capable of delivering sustainable earnings and growth.
During the interview, he discussed Tencent, Alibaba, Enel, LVMH and Airbus as examples of companies JCIC owned or viewed favourably at that time. His comments focused on qualities such as visible earnings, competitive strength, exposure to long-term growth and the ability to gain market share.
That company-by-company analysis remains central to how JCIC evaluates investments, combining global economic research with a disciplined review of quality, valuation, future upside and changing outlook.
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