One of the most misunderstood facts of 2025: Mag7 has gotten

One of the most misunderstood facts of 2025: Mag7 has gotten cheaper while the rest of the world has rerated higher.

?? Tech hasnt been a valuation story. Mag 7 multiples have compressed even as prices rose - earnings BOTH realised and forward looking did the work (white, p/e normalised to beginning of the year). Longer term valuations such as Schiller p/e in contrast look eye popping because average earnings over 10 years have YET to reflect the AI boost and regime shift of recent years.

?? Valuation rerating has migrated globally. Europe, Japan, and EM (orange purple yellow) have seen multiple expansion, reflecting catch-up optimism perhaps more than proven productivity acceleration.