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.
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