After this nice rally, US stocks aren’t cheap, according to the popular CAPE valuation metric, which averages the last 10 years of earnings in the P/E ratio. As you might expect, many European and beaten down EM countries are undervalued historically speaking. This doesn’t mean that the rally will stop or the lower valued countries will start to outperform, just that there is added risk, since P/E expansion is less of a probability from here.
Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.