How Expensive Are Stocks?

Source: Schwab


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…



Source: Schwab

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