How Cheap are Global Stocks?

Current rally from early March nothwithstanding if we take a standback look at global markets and ask the question “are markets cheap” on a historical basis, you can see that using a price earnings measure, that they are.

In fact you have to go back to the early 1980’s to see similar valuations.

Of course all depends on the “E” which is earnings. In the context of the P/E right markets may be a bit ahead of themselves right now but in the bigger picture and over the longer term equities have a lot of room on the upside.

This entry was posted on 20. June 2009 at 16:53 and is filed under Markets. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.