Global Equity Risk Premia - 2026-03-22

Finally, after many years, the S&P 500 equity risk premium is no longer the world's richest compared to its own historical norms. As we predicted, cheaper non-US markets would continue last year's outperformance. Most have, and now Japan, the UK and France have  exceeded the S&P 500's relative valuation richness. Japan's stock market even has an outright higher PE ratio than the S&P 500 now. We don't see this as an "America Last" trade, but rather a reaction to the productivity supercycle that is acting like a tide to lift all boats. If that's what's happening, why not have a cheaper boat? It will rise too!