, Columnist
Where Are Stocks Headed? Check the Starting Point
U.S. equities look expensive, particularly compared with the rest of the world, and values are based on earnings that appear to be overstated.
The market’s outlook is worsening.
Photographer: Drew Angerer/Getty Images North AmericaThis article is for subscribers only.
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Faced with big international shocks such as China’s devaluation of its yuan, the first instinct is to try to work out where markets are headed. The political possibilities are endless. Almost all arguments from game theory, whether in favor of a terrifying escalation or of an imminent cessation of trade hostilities, sound plausible. These issues are important, but if we are not sure where we are going, it is best to look at the starting point.