U.S. stocks are trading at more expensive valuations compared to European equities. TheSPDR S&P 500 ETF Trust (NYSE:SPY) carries a forward Price-to-Earnings (P/E) ratio of 21x, standing 50% higher than the SPDR EURO STOXX 50 ETF (NYSE:FEZ). Bank of America analysts Ohsung Kwon and Savita Subramanian suggested the initial sticker shock from the S&P 500’s valuation may not tell the whole story. “We hear ‘the S&P 500 is egregiously expensive vs. Europe.’ At first glance, it is true,” analysts wrote. Yet, the valuation premium of U.S. stocks over European equities is not as straightforward as it a…
