U.S. stocks are so dominant among developed markets that their position has become “unsustainable,” according to Luca Paolini, Pictet Asset Management Ltd.’s chief strategist.
Paolini made the argument Wednesday in a Twitter post that showed the country’s weight within the MSCI World Index, representing 23 countries. The U.S. share rose to a record 62.5 percent last month and closed just below that peak Wednesday, according to data compiled by Bloomberg. “Overblown” earnings estimates are among reasons why the percentage is poised to fall, he wrote.
Source: David Wilson, Bloomberg
