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
Performance – Best Performing Asset 33% of JPM clients expect developed market equities to perform the best over the next three months, driven by strong economic conditions and favorable market conditions. Image: J.P. Morgan
House Pricing Index Rising borrowing costs and interest rates are impacting global housing markets and driving down prices in many developed markets. Image: Morgan Stanley Research
Average and Median Equity Duration U.S. equities are 25% more sensitive to interest rate moves than other developed market equities. Image: Morgan Stanley Wealth Management
Valuation – Cyclically-Adjusted P/E Why are U.S. equities more expensive than other developed markets? Image: BCA Research
EM vs. DM Valuation Emerging market equities look attractive relative to developed market equities. Image: Goldman Sachs Global Investment Research
Cycles of U.S. Equity Outperformance – MSCI EAFE and MSCI USA Relative Performance Will U.S. stocks continue to outperform developed market equities (ex-US)? Image: J.P. Morgan Asset Management
Asset Return Expections on a Five-Year Horizon Government bond returns are expected to be negative across developed markets on a five-year horizon. Source: BlackRock Investment Institute
MSCI Latin America vs. MSCI World and Russell 1000 Value vs. Russell 1000 Growth Latin America vs. Developed Markets has been highly correlated to Value vs. Growth. Image: Goldman Sachs Global Investment Research
Equity Prices – EM Relative to DM vs. Gold Prices Is the relative performance of emerging market equities vs. developed market equities at a major market turning point? Image: BCA Research
Sovereign Bonds with Negative Yields This chart puts things into perspective by showing the share of developed market sovereign bonds with negative yields (1-10 year maturities). Image: Credit Suisse