MSCI USA’s valuation most stretched since dot-com era

The price/estimated earnings (P/E) ratio of the MSCI USA Index – a benchmark index of mid- and large-cap US equities – recently rose to its highest level since the dot-com era. Nonetheless, we still expect the index to recover a bit more ground this year, after slumping amid the outbreak of coronavirus.
John Higgins Chief Markets Economist
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