“Valuations in the US are much worse than everywhere else,”

 What if the relative decline of US stocks isn’t temporary?

US equities currently make up just under half of global stock market capitalisation, up from about a third in 2010

Equity investors with shoot-for-the-moon hopes don’t typically bother with currencies, but the dollar has the potential to be a big factor here. 

Its haven status is a huge support in luring funds from overseas into US stocks and bonds. Between March 2008 and September 2022, the dollar gained 60 per cent against a basket of its peers, climbing even during a financial crisis caused by the US. 

Yet this year, it has slid 4 per cent since turmoil first hit US regional banks in March.

Jennifer Hughes FT 5 May 2023

Stocks have rarely been this expensive. That doesn’t (necessarily) mean they’re headed for a crash.

FANGs eight companies — Apple Inc., Amazon.com Inc., Alphabet Inc., Meta, Microsoft Corp., Netflix Inc., Nvidia Corp. and Tesla Inc. — have accounted for all the S&P 500’s growth this year. 

The other 492 stocks are down slightly


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