Global Equity Risk Premia - 2026-04-19

For years the S&P 500 had the highest equity risk premium in the world, having outperformed every other market every time. Then last year foreign markets beat the S&P 500 almost unanimously, despite vastly superior US earnings growth. Finally, as of a month ago, the US ERP fell into third place. Now it's fallen to fourth, and our call for continued non-US outperformance continues. You can call this a valuation correction -- but we think it's taken a backdrop of surging global productivity-led growth to enable it.