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 December 31, 2024, unchanged from September 30, 2024. For ex-U.S. developed markets, it was 64% compared with 62%. For global ex-U.S. equities, it was 57% compared with 49%. For emerging markets, it was 43% compared with 32%. 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 85% compared with 83% at the end of September 2024; for the large-cap factor, it was 57% compared with 58%; for the value factor, it was 20% compared with 30%; and for the small-cap factor, it was 17% compared with 24%. For fixed income, the valuation percentile for U.S. aggregate bonds was 47%, down from 57% at the end of September 2024; for global ex-U.S. aggregate bonds, it was 50% compared with 54%; for short-term Treasuries, it was 35% compared with 47%; for intermediate-term Treasuries, it was 45% compared with 55%; for long-term Treasuries, it was 56% compared with 68%; for intermediate credit, it was 77% compared with 75%; for high-yield credit, it was 83% compared with 87%; for mortgage-backed securities, it was 59%, compared with 60%; for Treasury Inflation-Protected Securities, it was 48% compared with 46%; and for emerging markets sovereign debt, it was 88% compared with 81%.