US and European equity returns were much more similar before 2009
Posted by Unfair-Tough4154
US and European equity returns were much more similar before 2009
Posted by Unfair-Tough4154
4 Comments
Here is hoping we never experience a reversion to the mean for this one.
P/Es on megacap tech stocks went from 9 times to 30 times, and they represent the vast majority of the S&P 500 now.
I imagine this is mostly due to tech and many of the ZIRP-era startups. GDP per capita has grown at virtually the same rate in the US and EU from 1990-2022 and 2009-2022
https://ourworldindata.org/grapher/gdp-per-capita-worldbank?tab=chart&stackMode=relative&time=2009..latest&country=USA~GBR~OWID_EU27
Western Europe never recovered from the 2008 crisis. In 2008 my country had the same GDP per capita as the USA, now the USA is almost 60% higher than us. You can look at the graph for pretty much every western European country and it’ll tell you the [same story](https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=BE-NL–US-FR-DE&name_desc=true). The worst part is my fellow Europeans are largely delusional about this economic reality, they genuinely still believe the median European is richer than the median American.