Investors looking for stock investments on the cheap should look abroad, according to Schroders investment strategist Bob Armstrong. Europe’s Stoxx 600 index and the Japanese Nikkei 225 hit record highs earlier this year, along with the S & P 500 . That said, the Stoxx and Nikkei are trading at much more attractive valuations. FactSet data shows the former trades at 15 times trailing 12-month earnings, while the latter has a multiple of 23. The S & P 500, meanwhile sports a 27 times earnings multiple. This trend should continue, creating an opportunity for investors to find attractive investments at a cheaper valuation, Armstrong said. “There’s a lot to like in international markets. There’s a variety of ways to win here,” the strategist told CNBC in an interview. “Whereas much of the prior decade-plus really favored the U.S. market over international, we think now, again, international diversification is making a lot of sense.” In particular, Armstrong is bullish on Japan’s market, citing the country’s emergence from a decadeslong bear market amid a backdrop of global growth and growth. He also pointed to the Tokyo Stock Exchange’s “name and shame” initiative to nudge companies to improve their profitability and corporate governance. These measures, he said, have led to stocks that are more efficient with their cash and have posted more dividends with record buybacks. Year to date, the Nikkei is up nearly 20%, outpacing the S & P 500’s 17% jump. .SPX YTD mountain SPX year to date Both the U.K. and Europe more broadly also look promising, according to Armstrong. Europe has continued to surprise to the upside, the strategist said, despite recessionary concerns over mounting Russia-Ukraine tensions and a potential energy crisis. Armstrong pointed to Europe’s first-quarter earnings session, which offered some of the best earnings growth in several years. Moreover, these markets could receive a boost as the European Central Bank and Bank of England begin cutting interest rates in the near future. “Both markets are more sensitive to the direction of short-term interest rates because they have more floating-rate mortgages than we have,” the strategist said. “They’re more reliant on short-term financing via commercial banks than we are.” The Stoxx 600 has gained nearly 8% in 2024, while the UK’s FTSE 100 is up 6%. Armstrong didn’t disclose individual stocks, but investors looking for access to these overseas markets can gain it via exchange traded funds. Here are three examples: iShares MSCI Japan ETF (EWJ) : The fund is up 11% year to date and charges 0.5% in fees. iShares Core MSCI Europe ETF (IEUR) : The ETF has climbed 6% in 2024. It has an expense ratio of 0.11%. Franklin FTSE United Kingdom ETF (FLGB) : The fund has gained 8% this year and has an expense ratio of 0.09%.