Advertisement

Kamis, 31 Oktober 2013

12 Economies' Stock Markets Versus GDP

Your Message Subject or Title
  MANAGE SUBSCRIPTIONS   |   UNSUBSCRIBE   |   VIEW ONLINE
 
 
Chart of the Day
 
12 Economies' Stock Markets Versus GDP

There are many ways to value the stock market.

Some analysts will compare its price relative to the size of the local economy. Then they will compare that ratio to its historical averages.

Warren Buffett is known to favor market cap as a percentage of GNP.

Guggenheim Partners' Scott Minerd examined the market caps of twelve economies' market cap to GDP ratios and charted what they looked like compared to 10-year historical averages. Here's Minerd's commentary:

With continued monetary easing around the world and signs of a synchronous global expansion taking root, countries that were particularly hard hit over the past few years now present potentially attractive opportunities. Measured by market capitalization as a percent of GDP, Eastern Europe and smaller euro zone peripheral countries now appear to be the most undervalued of major regions worldwide. Major peripheral countries in the euro zone (Greece, Ireland, Italy, Portugal, and Spain) are also below their average level of market cap to GDP over the past 10 years, indicating further room for equity returns, compared to other developed markets. Emerging markets that suffered selloffs over the past few months also remain undervalued, including India, China, and South America.

This is not to say the U.S. stock market is doomed. It just means other markets look cheaper.

Read »



Also On Markets Today:
Advertisement

nfp jobs cotd

CHART OF THE DAY: There's Something Weird Going On In The Jobs Data
CHART OF THE DAY: Home Prices Surge And Have Their Best Month Since February 2006

CHART OF THE DAY: Home Prices Surge And Have Their Best Month Since February 2006
CHART OF THE DAY: This Is The Only NYSE Margin Debt Chart That Matters

CHART OF THE DAY: This Is The Only NYSE Margin Debt Chart That Matters
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: ipat39@gmail.com
Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Markets RSS Feed
Business Insider. 257 Park Avenue South, New York, NY 10010
Terms of Service | Privacy Policy



Share the latest business news with your network:

Share on Facebook
Share on Twitter
Share on Linkedin
Share via email


The email address for your subscription is: ipat39@gmail.com

Manage your email preferences   |   Unsubscribe

Business Insider RSS Feed   |   Terms of Service   |   Privacy Policy

Business Insider. 257 Park Avenue South, New York, NY 10010
Sailthru

Tidak ada komentar:

Posting Komentar