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By James J. Clarke and Sorin Roibu, portfolio managers at Brandywine Global, a specialist investment manager of Franklin Resources, Inc.

This year's most talked about election in the world is less than two months away. The upcoming US election raises questions about the implications for the economy and financial markets as well as equity market volatility and risk. Yet, we routinely are asked about political risk in other countries in which we invest: "Aren't you worried about Brazil?" or "France looks bad." However, there is a big question we would ask global equity investors: what about the US, one of the most expensive equity markets and one that also faces significant political risk?

The benefit of global investing is that you always have the flexibility to go someplace else. The world is a big place and there are opportunities everywhere. And what a time to do that now.

A US-centric investor is focused on the Federal Reserve starting to lower rates in September. However, monetary easing has already happened in Brazil, Europe, and the UK. Stocks are much cheaper in these places (see Exhibit 1). Furthermore, when US investors shift their attention past monetary easing and toward the November election, equity market volatility is likely to increase.

If a US-centric investor looked at European or UK companies, whether in the energy......................

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