Summary
- The United States continues to lead global equity markets higher even as concerns about global growth prompted dovish statements from global central banks last week.
- Differences in growth rates, real interest rates, and index and economic composition will necessarily lead to some performance dispersion, but placing domestic markets in a global context helps frame valuations.
- U.S. stocks continue to look modestly overvalued on a trailing and forward basis but do not appear meaningfully stretched relative to global comps.
- Global investors, myself included, have looked for global comps to close the performance gap with the United States, but the U.S. has continued to see multiples expand, furthering outperformance.
- Shifting U.S. policy has increased risk premia in export-focused global peers, lowering global multiples relative to the U.S.
Read the full article at Seeking Alpha right here: https://seekingalpha.com/article/4271752-p-e-ratios-yields-country