In the equities space, U.S. stocks are among the most expensive, trading up to the 77th percentile of their historical valuation range, with the S&P 500 showing a price-to-earnings of 17.6% and a price-to-book of 2.4.
Among developed countries, Australia, Italy and Japan equities markets remain below their average historical valuation range. The iShares MSCI Australia ETF (NYSEArca: EWA) has a 14.7 P/E and a 1.8 P/B. The iShares MSCI Italy Capped ETF(NYSEArca: EWI) has a 16.1 P/E and a 0.8 P/B. The iShares MSCI Japan ETF (NYSEArca: EWJ) has a 15.2 P/E and a 1.2 P/B.
Russia is the cheapest emerging market after the major sell-off this year in response to falling oil prices, volatility associated with the Ukraine conflict and Western sanctions. The Market Vectors Russia ETF (NYSEArca: RSX) is now trading at a 6.6 P/E and a 0.9 P/B. [Finally, Outflows From Russia ETFs]
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Max Chen contributed to this article. Tom Lydon’s clients own shares of EMB.