US stocks are cheap despite trading at all time highs.

The S&P 500's forward P/E premium relative to global equities is down to ~22%, the lowest since 2020. This marks a significant decline from ~50% seen in Q2 2024. This is also in-line with the levels seen in 2018-2019 and below the 10-year average of 31%. This comes as US earnings are proving exceptionally strong, with S&P 500 profits currently tracking +28.7% YoY growth. By comparison, European companies' earnings growth is tracking at +14.4% YoY, or HALF of US levels. Many US stocks are getting cheaper as they go up.

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