U.S. vs. Non-U.S. Equities Valuations vs. ROE Investors aren’t shy about paying a premium for U.S. stocks. The payoff? Superior returns on equity and earnings growth that few markets can match. Image: Goldman Sachs Global Investment Research
Valuation – 12-Month Forward P/E Ranges (MSCI Regions) Wall Street’s rally, powered by tech and AI euphoria, shows no signs of slowing—but soaring valuations and bubble talk leave little margin for errors despite the optimism. Image: Goldman Sachs Global Investment Research
Valuation – S&P 500 Median P/E Ratio The S&P 500’s median P/E ratio sits at 26.2—a level that leaves stocks looking pricey and raises the odds of thinner returns or a valuation pullback if history is any guide. Image: Ned Davis Research
Valuations and Peak of an Equities Rally Market participants are buzzing about an AI bubble with valuations sky-high. But ditching stocks now could mean missing the late-game rally—volatility shows we’re not in full-blown mania just yet. Image: Goldman Sachs Global Investment Research
S&P 500 Valuations The S&P 500’s current valuation places it alongside two standout episodes of market excess—the late-1990s dot-com mania and the 2021 stimulus-fueled rally—raising a yellow flag for investors who fear a stretch of muted returns. Image: Topdown Charts
Valuation – Real S&P 500 Index with Recessions and S&P 500 Shiller CAPE Ratio With the Shiller CAPE ratio hovering near 40 times earnings, the U.S. stock market looks expensive and long-term real returns are likely to be lower, though that doesn’t mean a crash is right around the corner. Image: Real Investment Advice
Valuation – S&P 500 CAPE Ratio For a while, valuations look irrelevant—until they dictate everything. Over the past 150 years, stretched multiples have reliably led to leaner returns, with the last three peaks leaving investors underwater in real terms over the next ten years. Image: Deutsche Bank
Valuation – S&P 500 P/E Ratio and Fed Chair Warnings on Stock Valuations Despite Powell acknowledging that U.S. equity prices look stretched, history suggests valuations alone rarely halt a rally—at least not in the short run. Image: Bloomberg
S&P 500 Valuation Despite lofty valuations, the fuel behind U.S. stock market performance this year has been earnings growth, not multiple expansion. Image: Goldman Sachs Global Investment Research
Equities – Global Valuation Range U.S. stocks remain priced at a hefty premium, while valuations outside the U.S. are closer to historical norms. That leaves global markets offering stronger relative value, even if they’re not a bargain in absolute terms. Image: Goldman Sachs Global Investment Research
S&P 500 Valuation Multiples With S&P 500 earnings estimates running high and valuations stretched, the risk is that any earnings or economic disappointment could trigger sharp market volatility. Image: Real Investment Advice