Morgan Stanley global markets chief sees US stocks at 100-year highs versus rest of the world

Morgan Stanley global markets chief sees US stocks at 100-year highs versus rest of the world
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The U.S. stock market sits at century highs versus global equities because of the furious outperformance over the past decade, the chief global strategist of Morgan Stanley Investment Management told CNBC on Monday. However, Ruchir Sharma predicted that won’t likely continue in the 2020s at the same pace. “This has been America’s decade by far. In terms of the American stock market over the last decade, it has been up 250%. All of the other world stock markets, on average, are up 50% or 60%,” Sharma said in a “Squawk Box” interview. Sharma, also head of emerging markets at Morgan Stanley’s wealth group, said that he’s “never seen a period of such outperformance” by the U.S. stock market. “So the American stock market today, relative to the rest of the world, is at a 100-year high, both in relative price terms and also in terms of the valuations.” U.S. stocks currently account for 56% of the world’s market value but only 25% of global economic output, Sharma said. “I think that is bound to narrow in the coming decade,” he added, calling that a “huge disconnect.” In a note to clients, Sharma wrote: “In every decade since World War II, global investors have flocked to a hot new theme. The 1950s were about stocks linked to a recovering Europe, the 60s were about big American companies known as the ‘Nifty-Fifty’, the 70s about emerging world exporters of commodities like gold and oil. “The 80′s saw a spectacular […]

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