Global markets are discounting slower, more modest growth and increasing risk premiums because of tightening financialconditionsand increasing political risks. Markets are also reflecting the need for renewed monetary stimulus to keep growth on track. Current pricing implies the US will outperform across stocks, bonds, and most currencies. Relative pricing for US assets, however, is too optimistic while non-US pricing is overly pessimistic. US stock markets have not found a bottom as valuations remain above long-term averages.