A graphic shows various asset and sub-asset classes’ valuation percentiles relative to fair value, where numbers in the lowest third represent undervaluation, numbers in the middle third represent fair value, and numbers in the highest third represent stretched valuation. For U.S. equities, the valuation percentile was 99% as of May 31, 2024, unchanged from December 31, 2023. For ex-U.S. developed markets, it was 64% compared with 57%. For global ex-U.S. equities, it was 49% compared with 47%. For emerging markets, it was 15% compared with 26%. Factor valuations are relative to broad U.S. equities; 50%, for example, is as equally overvalued as broad U.S. equities. The valuation percentile for the growth factor was 82% compared with 71% five months earlier; for the large-cap factor, it was 58% compared with 54%; for the value factor, it was 31% compared with 42%; and for the small-cap factor, it was 20% compared with 28%. For fixed income, the valuation percentile for U.S. aggregate bonds was 37% compared with 35% five months earlier; for global ex-U.S. aggregate bonds, it was 53% compared with 72%; for short-term Treasuries, it was 36% compared with 34%; for intermediate-term Treasuries, it was unchanged at 33%; for long-term Treasuries, it was 29% compared with 42%; for intermediate credit, it was 73% compared with 44%; for high-yield credit, it was 89% compared with 91%; for mortgage-backed securities, it was unchanged at 60%; for Treasury Inflation-Protected Securities, it was 47% compared with 43%; and for emerging markets sovereign debt, it was 75% compared with 61%.