If you take a look at the Financial Times data which list the PE ratios of the stock markets around the world, you will see that the major markets are relatively cheap compared to say the historical PE ratios which averages around 20.
The major surprise for me is that the Chinese stock markets have fallen to such depths. I remember that they were trending above 30+ just about 2 years ago. Now they are below 10. While Singapore is in the low 10s, indicating that there is room for the market to move up based on historical trends.
I don't look at PE ratios very often, but it provides a good way to gauge if markets are expensive or cheap now.
Time to look at getting into those markets that are undervalued now.
ETFs for the US, Chinese or Singapore stock market anyone?
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