https://www.yardeni.com/pub/mscipe.pdf
The above links to an interesting report showing forward P/E ratios of global regions over time.
I find it interesting to take a step back and view the markets at a high level during times of increased volatility such what we are currently experiencing and I thought some of you may appreciate this report.
In my view, stocks are now getting into the inexpensive zone. The first slide shows the following forward P/E ratios based on 12-month forward analyst consensus:
Emerging Markets: 10.8
EMU: 12.1
Japan: 12.2
UK: 11.6
US: 15.6
All of these are down significantly from recent highs. For example US had a forward P/E of approximately 19 at the beginning of 2018.
Another reminder: The current US forward P/E of 15.6 implies a 6.4% return on earnings, add nominal inflationary growth of 2.0% to this and we have a total return of 8.4%. Not bad at all, and it is likely the US will grow at a rate faster than 2%.
Submitted December 15, 2018 at 11:51AM by ryhend88 https://ift.tt/2EnKee1
