Capital Markets Autumn 2020

III

Bargains Abroad? Valuation

• International developed and emerging markets are trading at historically large discounts to the S&P 500

I

II

Non-U.S. Stocks are Inexpensive Relative to U.S. Equities

MSCI EAFE MSCI EM

10%

III

0%

-10%

IV

Non-U.S. stocks look relatively inexpensive

-20%

-30%

-40%

V

Discount to S&P 500

-50%

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

VI

Source: Alger and FactSet through September 2020

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