Willem Sels, HSBC’s Global Chief Investment Officer, argues that US stocks are actually cheaper than their headline valuations suggest. The S&P 500 trades at a forward price-earnings ratio of roughly 19 times, compared with nearly 15 times for Europe’s Stoxx 600. Sels attributes this gap to traditional valuation models failing to price in the structural productivity gains from artificial intelligence adoption. HSBC currently favors US and Asian equities over European stocks, identifying technology and semiconductor stocks as offering the most compelling upside. The 10-year Treasury yield hovering near 5 percent remains a potential volatility trigger for equity markets.
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