Internationals & US Investing Strategic Approach!!! (4 Stocks To Buy)

Value Investing with Sven Carlin, Ph.D.•Aug 31, 2026

Summary

Sven states that global wealth accumulation is best achieved by comparing price, reward, and risk across both US and international markets. Sven highlights that the S&P 500 is currently trading at a P/E ratio of 30 and a CAPE ratio above 40, making it the second most expensive market in the last 150 years. Sven argues that investors should look for 'absolute cheapness' in emerging markets where P/E ratios are below 10, rather than chasing returns in expensive, AI-concentrated indices. Sven advocates for a two-pillar strategy where investors slowly build a low-risk, high-reward international value pillar to balance their developed market holdings over the next decade.

**Interactive Brokers (IBKR):** Sven recommends this platform and its stock due to its global reach and low fee structure. Sven notes that the company has performed tremendously well because the business itself is robust and expanding globally. Sven suggests that it is a strong tool for international investors looking to manage global portfolios efficiently.

**Tencent (TCEHY):** Sven highlights this Chinese tech giant as a key value opportunity despite current negative market sentiment. Sven points out that the company has a P/E ratio of 15 and is poised to integrate AI across its various business segments. Sven argues that the growth potential compared to its current valuation makes it a compelling long-term consideration for value investors.

**JD.com (JD):** Sven states that this e-commerce business is currently overlooked and trading at a significant discount with substantial cash on its balance sheet. Sven notes that the business is currently in a downturn, which provides a favorable entry point for patient investors. Sven argues that it is highly unlikely for investors to lose money on JD over a five-year period given its current valuation and strategy.

**Prosus (PROSY):** Sven mentions Prosus as a strategic way to gain exposure to Tencent at a significant discount. Sven observes that Prosus trades at an attractive P/E of 9, offering a better valuation than the underlying Tencent shares themselves. Sven views this as a prime example of the deep value available in international markets that are currently being ignored by the mainstream.

**S&P 500 (SPY):** Sven warns that the US market is currently in a bubble driven by AI hype and historically high valuation metrics. Sven states that a return to the historical average P/E of 15 would imply a 50% decline in the index. Sven argues that buybacks at these record prices are often a waste of capital and that investors should be cautious of the downside risk.

Mentioned Stocks

SPY

Sentiment: SELL

Reasoning: Sven states that the S&P 500 is currently at its second most expensive level in 150 years with a P/E ratio near 30. Sven argues that the dividend yield is historically low and that the index faces a potential 50% downside to return to historical valuation means.

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IBKR

Sentiment: BUYAction: RECOMMENDED

Reasoning: Sven states that Interactive Brokers is his preferred platform for all current transactions due to its global reach, low fees, and high yields. Sven argues that the stock has performed tremendously well because the underlying business is strong and continues to grow globally.

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Sentiment: BUYAction: RECOMMENDED

Reasoning: Sven states that JD.com is currently undervalued with a lot of cash on its balance sheet. Sven argues that even in a downturn, the company's risk-reward profile is highly favorable and it is unlikely to lose money for investors over a five-year horizon.

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TCEHY

Sentiment: BUYAction: RECOMMENDED

Reasoning: Sven argues that Tencent offers significant growth potential at a reasonable P/E ratio of 15. Sven states that the company's plan to apply artificial intelligence across its vast ecosystem makes it an attractive long-term value play.

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PROSY

Sentiment: BUYAction: RECOMMENDED

Reasoning: Sven argues that Prosus is an excellent way to gain exposure to Tencent at an even lower valuation, noting its P/E ratio of 9. Sven states that this discount provides a significant margin of safety for international investors.

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