Pro Charts: Stocks & ETFs

US Equity Valuation At All-Time High vs. China And Brazil

Updated: Mar 23, 2024 | Published: Mar 23, 2024
Verified Investing
By Verified Investing
US Equity Valuation At All-Time High vs. China And Brazil

US stocks continue to be the favored investment for domestic and global investors. This gets intriguing if there is a reversion to the mean where foreign markets like Brazil and China play catch-up and US stocks see a pullback. In the chart, note the dramatic disparity. For example, US stock markets like the NASDAQ and S&P continue to make all-time highs while China and Brazil have not made all-time highs in over a decade.

The reversion trade with China and Brazil leading would likely occur if the US has a hard landing and inflation continues to uptick, handcuffing the Federal Reserve from lowering rates aggressively.