Five charts to start your day

Is the US stock market overvalued?

I don't know about you, but things are just too quiet right now. The market is just too calm. It's eerie.

Of course, we are in the midst of a bull run that now appears to be broadening out. Last year, the US stock market was led by just seven mega tech firms. But stocks across the entire S&P 500 are rallying, spread across every single sector. So that begs the question, are US stocks getting expensive? More specifically, are they getting expensive relative to European stocks?

There was a great series of charts in the Financial Times yesterday in their unhedged newsletter. The takeaway for me was these two charts (yes, two rather than one) tell the story well.

In short, everything is getting a bit expensive in the US relative to Europe. US stocks across every single sector seem to be trading at a premium compared to their European equivalents. And, this is not helped by the fact that US large caps have outperformed their European counterparts for more than ten years. Draw your own conclusions. But remember, the market can rally longer than we can stay solvent.

Almost everything in the US is expensive

Source: Financial Times

Coming up:

• Super Micro Computer and MicroStrategy swell to $84 billion

• Japan’s stock market has finally recovered to its 1989 level

• ETF flows from Bank of America’s private clients

• Amazon’s sprawling empire is experiencing job cuts

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