Excerpt from The Wall Street Journal quoting DataTrek co-founder Nick Colas:
…. “U.S. stocks are trading at 17.1 times their projected earnings over the next 12 months, compared with 11.5 times for Europe, 12.4 times for Japan and 10.9 times for emerging markets, according to DataTrek Research. Yet investors have piled into U.S. equities: Since the end of 2019, the S&P 500 has outperformed stocks in Europe, Japan and emerging markets, said DataTrek.
“Scan the current valuation data and returns since 2019, and you will come to the inevitable conclusion that U.S. stocks were expensive 2 1/2 years ago but that made no difference to their ability to outperform by a wide margin,” said DataTrek co-founder Nicholas Colas.
The MSCI World Index has added more than 7.4% over the past month. Still, said Colas, investors should be wary of recommendations of non-U.S. stocks based on valuation or recent performance”….
Full article here on the WSJ.