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 hasn’t 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.