Yawning valuation gap between US stocks and the rest of the world

SINGAPORE (Oct 8): Global markets, save for Wall Street, headed into the last quarter of 2018 with a sense of caution. There are reasons to be wary, seeing that developments in the first nine months have not gone according to script, confounding almost all analyst expectations at the start of the year. 

Narratives on the much-vaunted synchronised global growth have all but disappeared. While the US economy is gaining traction, growth momentum pretty much everywhere else has stalled. 

Instead of a worldwide stock market rally, we witnessed a persistent divergence of fortunes. US stocks are near all-time highs. The Dow Jones Industrial Average rose to consecutive fresh records last week, adding to its year-to-date gains.

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