What to make of the recent outperformance of US equities

The war in Ukraine has challenged our view that US equities will underperform those in other developed markets over the next few years. We are not yet ready to abandon this view while the outlook is still so uncertain. But if real Treasury yields continue to fall, or Europe’s energy imports from Russia are severely curtailed, the recent run of US outperformance will probably continue, at least in the near term.