Amid soaring AI earnings, U.S. stocks are losing some of their sheen to global markets. Is that a bad thing?
After a tough week, valuations of U.S. stocks compared to the rest of the world are now at their lowest level in six years:
Following a massive rally in global stocks beginning in 2024, the U.S. stock market is at a six-year low in valuation relative to the rest of the world. (Source: Bloomberg)
It also doesn’t hurt that many global markets outperformed the U.S. in 2024 and 2025.
One case in point: Our proverbial man in Buenos Aires, Joel Bowman, reports that Argentina’s ongoing free-market reforms are spiking economic growth, a substantial reduction in inflation, and an upside in the local stock market – all good signs for a country on the mend from a century-long flirtation with socialism.
Global opportunities aside, the US stock market’s stealthy reset of sectors outside the complex AI trade means solid U.S. companies are offering attractive entry prices, particularly in energy, rare earths and critical minerals.
We don’t say that lightly.
In the open market, ex-Mag 7, you can buy good companies at a discount while the 4-year rally across the indexes is still making retirees glance at their 401(k)s, IRAs and pension funds with glee.
Surprisingly, even the stocks big-money tech players have bought stakes in (while the Trump administration forces global supply chain reshoring) are still on sale.
The market set up, right now, is unique.
If we’ve done our math correctly, you will do well at this point to buy good U.S. stocks on the cheap.
Today’s Grey Swan Pro reveals a stock trading under a key price floor. It’s a U.S.-based stock outside of the tech space that could see a massive surge in earnings and revenues this fall — details here.