“While some would say the markets are undervalued or overvalued, I guess it’s all relevant when you ask, compared to what?”

From the vaults of Global Financial Data Co: Here are the global valuations of the S&P 500, Nikkei, DAX and the FTSE.

Here are the historical valuations for the S&P 500:

1.     1871-2013: 15.99
2.     Last 25 years: 27.98
3.     Last 75 years: 16.90
4.     Today: 19.17

 

Global Historical Valuations on the S&P 500, Nikkei, DAX and the FTSE P/E Ratio’s


And here is the Nikkei to 1915:

1.     P/E Ratio 1956-2013: 65.34
2.     Last 25 years: 156.98
3.     Last 50 years: 72.41
4.     Today: 17

 

And here is the German DAX to 1890:

1.     P/E Ratio 1969-2013: 16.47
2.     Last 25 years: 16.98
3.     Last 50: N/A
4.     Today: 14

 

And here is the FTSE to 1850:

1.     P/E Ratio 1927-2013: 16.73
2.     Last 25 years: 16.70
3.     Last 75 years: 16.75
4.     Today: 16.82

 

 

 

Source:

Global Financial Data

Category: Markets, Think Tank

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

One Response to “Global Indices & Valuations Are In the Eyes of the Beholder”

  1. dark1p says:

    Interesting charts, Barry. But all they really tell us is that there is no direct correlation between p/e and stock indices. One can be low while the other is high, or vice versa, or one high and the other middling. If anything, this helps put to bed the canard that p/e is any way whatsoever to judge the under- or overcooked nature of an index. It means that valuation in and of itself is pretty much b.s., a fairy tale from another time far, far away. This is why I stick to TA. The ancient verities of the market pretty much all turn out to be baloney, and can’t explain why a market will move as it does. Nothing is perfect, of course, but p/e and its ilk are worthless, as your charts show.