Global equity markets are currently experiencing their second most expensive year in history based on the market cap-to-GDP ratio.

The only time valuations were higher was in 2021, at the peak of the market.

Today, this metric sits 7 percentage points above the levels seen at the height of the tech bubble in 2000.

It's important to note that US equities — comprising nearly 60% of global market capitalization — are by far the largest contributor to this elevated valuation.