Super-Rich Stock Valuations May Trigger a Market Plunge

So far in 2018, U.S. stocks have delivered gains far in excess of leading markets abroad, and the performance gap widened in the third quarter. In the process, the valuations of U.S. stocks have become much richer than those of key overseas indexes, trading at their highest premiums since 2009, per research by Bank of America Merrill Lynch , as cited by The Wall Street Journal. Jack Ablin, chief investment officer (CIO) of Cresset Wealth Advisor, told the Journal: “It’s hard to imagine that the divergence in valuation is sustainable. Good things are happening in the emerging world, but global investors are attracted to the U.S. at the moment."