RefBan

Referral Banners

Yashi

Wednesday, December 26, 2012

The US Stock Market Is Now One Of The Most Expensive In The World

View this email online | Add newsletter@businessinsider.com to your address book
Money Game Share this Email
Home Tech Finance Markets Politics Strategy Entertainment Advertising Retail Sports Life

Wednesday, December 26, 2012
Find Us on Facebook Follow US on Twitter
The US Stock Market Is Now One Of The Most Expensive In The World

U.S. stocks have been outpacing earnings growth in recent periods.  This means that price-earnings multiples have been expanding.

However, Morgan Stanley's Greg Peters is concerned that these multiples are getting a little too high for comfort.

"Our regional preference is for [Emerging Markets], and in particular [Asia excluding Japan] over [Latin America], while we would underweight the US, as it is a relatively expensive market, a crowded trade, and has the most earnings risk," writes Peters.

Barclays' global equity strategy team is also concerned about U.S. valuation as measured by the cyclically adjusted price-earnings ratio, a P/E ratio based on long-term average earnings.

Unlike Morgan Stanley, Barclays sees better value in Europe.

"Of the 10 cheapest regional indices based on the Cyclically Adjusted PE (Shiller PE), 8 are from developed Europe," wrote Barclays in a note published last week. "We think the value attraction we witness within European equities, along with the general underweight positioning, should continue to drive European equities higher in 2013."

Here's a chart of cyclically adjusted PEs around the world from Barclays:

Read »


Also On Money Game Today:
Advertisement

Euribor eurodollar calendar spreads central bank trade of the year

CHART OF THE DAY: The Defining Central Bank Trade Of 2013
chart of the day, gold eft driving gold price appreciation, december 2012

CHART OF THE DAY: November 18, 2004 Was Critical For The 8-Year Rally In Gold
chart of the day, treasuries over the last 33 years, december 2012

CHART OF THE DAY: How Treasuries Fell In Only 3 Of The Last 33 Years
Share this: Facebook Facebook Twitter Twitter Digg Digg Reddit Reddit StumbleUpon StumbleUpon LinkedIn LinkedIn
Follow us on Facebook Follow us on Twitter
The email address for your subscription is: dwyld.kwu.jobhuntportal11@blogger.com
Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed
Business Insider. 257 Park Avenue South, New York, NY 10010
Terms of Service | Privacy Policy


If you believe this has been sent to you in error, please safely unsubscribe.

No comments:

Yashi

Chitika