The Growing Gap Between U.S. and International Economies
We’re bouncing around this week, starting with the recent surge in Bitcoin and market enthusiasm, although maybe not market-wide. We'll analyze valuations and dig into why the S&P 500's growth is largely driven by earnings and dividends. The conversation shifts to the comparison between US and international markets, highlighting the challenges faced by European economies and the growing wealth disparity between the US and Europe. We'll conclude with a historic market run and what history says that could mean for the future.
Key Takeaways
- [00:17] - Enthusiasm is evident, but it’s not market-wide
- [06:30] - Why this isn’t a bubble
- [09:16] - U.S. business environment allows our markets to outperform international
- [16:28] - Wealth disparity between the US and Europe is widening
- [21:15] - S&P 500 is poised for its second positive 20% year in a row
Links
- Detrick: S&P 500 up 98% since the end of 2019, but many think we are in a bubble.
- Republicans and Democrats have starkly different inflation expectations
- Russell 2000 is up 10% in the last month France is up 9% in the last 24 years
- The S&P 500 being up >20% for two consecutive years has only happened four times in the past 150 years.
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