The S&P 500 is back at a record, while stocks in most of the rest of the world have yet to return to 2018’s peaks. But the rampant outperformance of U.S. equities can’t last forever. Low interest rates have been credited with helping to drive the U.S. market to eye-watering valuations, but financial conditions haven’t been so different elsewhere. The big reason why U.S. stocks have beaten those in almost every other country during the past decade—and why the trend has limits—is more basic: profits.

Source: Wall Street Journal April 24, 2019 09:34 UTC