Global markets rallied in August, despite a decline in the energy sector

Investing.com — Global stock markets now look “expensive,” with most sectors looking expensive except energy, according to analysts at UBS.

The global market gained 1.9 percent in August, UBS researchers said in a note to clients on Monday, bringing their total year-to-date returns to 17 percent. The real estate, healthcare and consumer staples sectors all posted solid gains last month, while energy was the worst performer, falling 1.8 percent.

“The market’s PE is high relative to history, suggesting global markets are expensive,” UBS analysts said.

They added that this trend is “primarily” due to high valuations in the US, noting that “most sectors look expensive, with the exception of (e)energy, which is well below historical norms.”