The US equity market has been not only strong in absolute terms but also relative to the rest of the world. For the last 30 years, it has always traded at a premium, and probably justified, but in two instances, during the #dotcom era and now, the discount between RoW and the US market has reached extreme levels. Around 60% discount in terms of price to book value. In the past, when the discount has been that deep, investors have rotated portfolios looking for value opportunities outside the US.
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Source: Morgan Stanley Research
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