**U.S. Stocks Surge Post-2024 Election, Global Markets Lag Behind**

In the wake of the 2024 U.S. election, American stocks have reached new heights while global markets appear to be struggling. The S&P 500 remained relatively stable on Wednesday after a substantial climb of nearly 5% since the Monday before the election. However, the same success is not mirrored by the FTSE All-World ex-U.S. index, which has dropped 2.6% during that same period.

Jonathan Krinsky, BTIG's Chief Market Technician, observes that U.S. stocks are uniquely strong in the current market. While he acknowledges that this perspective holds weight in the broader scheme, he also warns that the upcoming weeks will be critical in determining whether global stocks are signaling deeper market issues or simply experiencing a reaction similar to the one seen post-2016 election.

The recent surge follows an earnings season where many companies adjusted their future performance expectations downward. This shift has contributed to an expensive valuation for the S&P 500, highlighted by Andrew Lapthorne of Societe Generale. Lapthorne notes that U.S. equities have seen a 40% increase in 12-month forward price-to-earnings valuations over the past two years, reaching 22 times earnings, with a dividend yield of 1.2%, just under the 1.3% recorded in February 2000.

Speculative assets, particularly Bitcoin and other cryptocurrencies, have also experienced significant gains. Despite skepticism over these high valuations, the market could continue its upward trajectory as it heads into the typically strong end-of-year period. However, if the anticipated benefits under a Trump presidency fail to materialize, the market could face a harsh correction.