P/E10's for International Markets
Posted: Tue Dec 28, 2004 1:24 pm
I'm trying to better understand International market valuations versus USA.
Does anyone know where "equivalent" P/E10's (or regular current PE's) exist for various International markets ?
I thought I read somewhere recently that:
- Asian market PEs's are now averaging 11
- Europe market is now 13
- Japan is now 15
- USA is now 18+
I don't know if above are correct and/or if they can be meaningfully compared. I'm sure there's accounting differences, etc.
But.... if:
- the valuations above are substantially lower, and
- given the dollar will probably only get weaker, and
- given many International economies have higher growth rates, and
- these markets might have low correlation to US markets
then is a "very healthy dose" of International stocks a good "balancer" to the portfolio ?
Maybe the numbers above are wrong and/or I'm grossly missing additional risks...........
Does anyone know where "equivalent" P/E10's (or regular current PE's) exist for various International markets ?
I thought I read somewhere recently that:
- Asian market PEs's are now averaging 11
- Europe market is now 13
- Japan is now 15
- USA is now 18+
I don't know if above are correct and/or if they can be meaningfully compared. I'm sure there's accounting differences, etc.
But.... if:
- the valuations above are substantially lower, and
- given the dollar will probably only get weaker, and
- given many International economies have higher growth rates, and
- these markets might have low correlation to US markets
then is a "very healthy dose" of International stocks a good "balancer" to the portfolio ?
Maybe the numbers above are wrong and/or I'm grossly missing additional risks...........