Alternatively, investors could look overseas for cheaper investments. For instance, European and emerging market stocks are just beginning to pick up this year after falling behind U.S. equities last year.
For instance, the Vanguard FTSE Europe ETF (NYSEArca: VGK) shows a P/B ratio of 1.73 while the iShares MSCI Emerging Markets ETF (NYSEArca: EEM) has a P/B ratio of 1.29.
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Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own shares of SPY and EEM.