Valuation – S&P 500 Index Forward P/E Ratio vs. MSCI World Ex-U.S. Forward P/E Ratio U.S. equities currently trade at roughly a 50% premium over international stocks, fueled by stronger earnings growth, greater profitability, and investors’ willingness to pay extra for these advantages. Image: Bloomberg
MSCI All-Country World Index and RSI (14) Signs of overheating are emerging in global stocks, with technical and flow indicators nearing thresholds that have previously triggered sell signals. Image: Bloomberg
Valuation – U.S. Equities vs. Rest of World – 12-Month Forward PE Ratios U.S. equities trade at historically high valuations versus global peers, with the premium widening. While strong fundamentals support this, it also poses risks if growth expectations decline or macroeconomic conditions worsen. Image: Deutsche Bank
Performance – S&P 500 Relative to Rest of the World While U.S. stocks outperformed international markets for more than a decade, 2025 has seen a reversal, with American equities lagging behind most global peers—even after the recent rally. Image: Bloomberg
Equity Fund Flows U.S. vs. Rest of the World Over the past four weeks, U.S. equity funds have experienced substantial outflows, while equity funds in other regions have recorded inflows, indicating a shift in global investor sentiment. Image: Deutsche Bank Asset Allocation
Nominal GDP as % World for Important Countries/Regions The Global South is rapidly emerging as the primary driver of global demographic and economic growth. For investors and businesses, it presents expanding markets and new opportunities that will be increasingly difficult to ignore. Image: Deutsche Bank
World Technology vs. World Ex. TMT Continuous technological innovation, resilience, and the expanding societal dependence on technology strongly underpin the tech sector’s prospects for sustained market outperformance. Image: Goldman Sachs Global Investment Research
S&P 500 Corrections and Bear Markets Since World War II Corrections and bear markets, while inevitable and uncomfortable, often reset valuations—providing long-term investors a chance to reevaluate holdings and build positions at attractive levels. Image: Carson Investment Research
Valuation – PE10 Ratio USA vs. Rest of the World Investors seeking diversification and long-term growth may prefer emerging markets and non-U.S. developed markets over U.S. stocks due to their attractive valuations. Image: Topdown Charts
MSCI AC World Calendar Year Returns vs. Intra-Year Declines Despite median intra-year drops of 15%, the global equity index ended positively in 34 of the past 45 years—highlighting the value of long-term investing over reacting to short-term volatility. Image: Goldman Sachs Global Investment Research
MSCI AC World – Bear Market Rallies Since the 1980s, there have been 19 global bear market rallies, lasting 44 days on average with MSCI AC World returns of 10–15%. Image: Goldman Sachs Global Investment Research