Thought provoking discussion on valuations from Jeff Kleintop at Schwab:
• Although world stock market valuations are above average, similar valuations have produced double-digit gains over the following 12 months during the past 50 years.
• Relative valuations do not currently favor one country or region’s stock market over another.
• Valuations support a globally diversified portfolio offering the best diversification benefits in 20 years.
While I agree with points 1 and 3, I disagree about point 2 — Europe, Japan and especially Emerging Markets (not on chart) are cheaper than the USA…