Chart o’ the Day: The World is Cheap

I love this chart from Chris Konstantinos at RiverFront Investment Group. He’s showing us a record spread between what investors are willing to pay for US stocks vs International stocks on forward price-earnings ratio…

Looking a 12-month forward P/E ratio at the MSCI All-Country World Ex-US index, we are currently at the largest valuation gap between US and non-US markets in the 15+ years of data to which we have access.

 

Josh here – We remain unapologetically overweight anything but the S&P 500. It’s not a market prediction, it’s an awareness of expected returns. When the US stock market sells at a 30 CAPE and yields just 2%, you can’t expect home run performance going forward over any meaningful time frame. It forces you to be open-minded about other asset classes, if you’re a serious investor.

Now go read the rest of what Chris has to say about this year’s synchronous recovery across earnings and economies around the world:

Global Synchronicity: Positive Earnings Mirroring Positive Economic Trends (ETF Trends)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. bitcoin era news commented on Sep 25

    … [Trackback]

    […] There you can find 84679 additional Information to that Topic: thereformedbroker.com/2017/09/07/chart-o-the-day-the-world-is-cheap/ […]

  2. is 7lab pharma store legit commented on Oct 08

    … [Trackback]

    […] There you can find 97569 more Info on that Topic: thereformedbroker.com/2017/09/07/chart-o-the-day-the-world-is-cheap/ […]

  3. knockoff grande complication iwc commented on Nov 16

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2017/09/07/chart-o-the-day-the-world-is-cheap/ […]

  4. td easyweb sign in commented on Nov 26

    … [Trackback]

    […] Here you can find 25256 additional Information on that Topic: thereformedbroker.com/2017/09/07/chart-o-the-day-the-world-is-cheap/ […]

  5. scotia bank online commented on Nov 30

    … [Trackback]

    […] Find More Info here to that Topic: thereformedbroker.com/2017/09/07/chart-o-the-day-the-world-is-cheap/ […]

  6. replica omega seamaster cosmic commented on Dec 08

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2017/09/07/chart-o-the-day-the-world-is-cheap/ […]

  7. 5d diamond painting commented on Dec 31

    … [Trackback]

    […] Find More on that Topic: thereformedbroker.com/2017/09/07/chart-o-the-day-the-world-is-cheap/ […]

  8. lowongan cpns 2021 lulusan sma smk commented on Jan 31

    … [Trackback]

    […] Here you can find 23242 more Info to that Topic: thereformedbroker.com/2017/09/07/chart-o-the-day-the-world-is-cheap/ […]