Global equity market Investors are acutely aware of the tremendous outperformance of US equities (VTI) versus non-US equities (VXUS) over the past ten years, as illustrated in the chart below.
About 2/3 of this 135% cumulative out-performance is accounted for by higher earnings per share growth of US versus non-US equities.1 The remaining 1/3 is attributable to the relative change in earnings multiples, leaving the one-year trailing Earnings Yield of US equities at 4.9%, 2% lower than the 6.9% for non-US equities.2 The difference in the 10-year cyclically-adjusted Earnings