S&P Compared to Other Markets
Many investors believe in TINA (There Is No Alternative) for a valid rational for the S&P500 to go higher despite high valuations (26x PE) because of how low interest rates are in the US. However, when looking at other developed stock markets such as Europe, Germany (the largest country in Europe,) Switzerland and Japan, that have low to negative ten-year yields, they all have higher dividend yields and lower PE ratios compared to the US. China is here for comparison given they are the second largest economy but their ten-year yields are much higher and their PE is much lower.
Dan Niles is founder and portfolio manager for the Satori Fund, a tech-focused hedge fund.