U.S. Stocks Are Super-Expensive, But for the Right Reasons

There are two beautifully simple explanations for why U.S. stocks are valued so much higher than equities in the rest of the developed world. First, the U.S. economy is doing much better than troubled Europe, aging Japan or Brexit-stricken Britain. Second, the U.S. market includes the FANGs of Facebook, Amazon.com, Netflix and Google, now Alphabet, while the rest of the developed world has few big companies with high growth potential. The question investors often ask is whether the valuation gap is so big they should prepare…

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