A Common Sense Valuation Comparison of Global Equity Markets
A Common Sense Valuation Comparison of Global Equity Markets * and the relevance for quantitative (algorithmic) Mean Reversion startegies # click on image to see bigger Table Table 1: Worksheet Table 2: Earnings-based Table 3: Dividends-based · Each country’s financial markets have their own characteristics and peculiarities so comparing them with a global average of Price/Earnings, Price/Book etc is meaningful. · Because of the loose money policy (Quantitative Easing) by the major economies (Eurozone, USA, Japan, even China in some ways) in the recent years, leading to low interest rates, there is a tendency for financial asset bubbles to arise, caused by excess funds chasing yields. · The interplay between the Bond market and Equity market is an often underrated factor in determining the directi...