Global investors today are watching two very different stock markets play out: a high-flying U.S. benchmark, the , and a policy-driven Chinese equity landscape. The China vs. US stock market performance gap has widened and narrowed in cycles, but the current moment is especially striking: Wall Street is pressing to record highs while Chinese equities trade at much lower valuations despite recent rallies.This duel is not just about geography; it’s about which model of growth, earnings, and policy investors should trust. And for traders, it raises the tactical question: which side do you back, and how do you express that trade efficiently?
Wall Street’s Current Drivers
Elevated Valuations but Earnings Support
U.S. stocks are undeniably expensive. As Reuters noted, “the U.S. stock market looks nearly as expensive as ever”, with the S&P 500 trading around 22× forward earnings — a historically stretched multiple, but one…
