HSBC’s Sels: US stocks undervalued, yields key risk

TREE NEWS reports: Willem Sels, global chief investment officer at HSBC Private Banking and Premier Wealth, said US equities are not as expensive as they appear, with valuations still not fully reflecting AI-driven productivity and earnings growth. The P/E gap with European stocks has narrowed, and the S&P 500’s forward P/E of about 19 times versus Stoxx 600’s near 15 times supports this. However, surging bond yields pose the biggest risk to the stock market.