US equity valuations still much higher than elsewhere

Despite the sharp fall in the US stock market this year so far, US equities still appear much more highly valued than their peers in the rest of the world. While that might not tell us much about the outlook for relative returns in the near term, comparatively high valuations in the US are perhaps a reason to suspect that the stock market in the US will underperform those elsewhere over the longer term. In view of the wider interest, we are also sending this Asset Allocation Update to clients of our Long Run Service.