Dotcom Deja VuAfter a more than 40% climb in stocks from the trough of the coronavirus-driven slump in March, global equity valuations have surged to their highest since the dotcom bubble of the new millennium.The MSCI AC World Index is trading close to a commanding 20 times forward estimates for the next year, according to data compiled by Bloomberg.U.S.
PremiumWhile valuation concerns are not limited to the world’s biggest stock market, multiples in the U.S. are getting the bulk of the attention.For good reason.
If you slice and dice equal-weight gauges of the S&P 500 and MSCI World Indexes, the premium for an “average" U.S. share surged to the highest in at least a decade after the peak of the coronavirus outbreak.