I love this chart from Chris Konstantinos at RiverFront Investment Group. He’s showing us a record spread between what investors are willing to pay for US stocks vs International stocks on forward price-earnings ratio…
Looking a 12-month forward P/E ratio at the MSCI All-Country World Ex-US index, we are currently at the largest valuation gap between US and non-US markets in the 15+ years of data to which we have access.

Josh here – We remain unapologetically overweight anything but the S&P 500. It’s not a market prediction, it’s an awareness of expected returns. When the US stock market sells at a 30 CAPE and yields just 2%, you can’t expect home run performance going forward over any meaningful time frame. It forces you to be open-minded about other asset classes, if you’re a serious investor.
Now go read the rest of what Chris has to say about this year’s synchronous recovery across earnings and economies around the world:
Global Synchronicity: Positive Earnings Mirroring Positive Economic Trends (ETF Trends)
[…] Right now, in terms of valuation, US stocks are relatively expensive and International stocks are relatively cheap. Via this ETFTrends article by Chris Konstantinos at RiverFront Investment Group, via TRB: […]
[…] Right now, when it comes to valuation, US shares are comparatively costly and International shares are comparatively low cost. Via this ETFTrends article by Chris Konstantinos at RiverFront Investment Group, by way of TRB: […]
[…] appear to make sense to underweight U.S. equities relative to the rest of the world, as some have argued. However, I would caution investors to think twice before doing so, as making allocation […]
[…] Right now, in terms of valuation, US stocks are relatively expensive and International stocks are relatively cheap. Via this ETFTrends article by Chris Konstantinos at RiverFront Investment Group, via TRB: […]
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