How Expensive Are US Equities?

US equity valuations are a source of extreme consternation for many investors currently. There are two main issues. First, stocks re-rated at the beginning of 2023 as yields retreated in a broad, cross-asset rally aided and abetted by ongoing dollar weakness. That rally was snuffed out last month by a hawkish repricing across the US rates complex, accompanied by a rebound for the dollar. Despite the pullback, US shares haven't de-rated in a meaningful way, or at least not to the extent you'd e