CAPE differs from the usual P/E ratio that so many investors are familiar with because CAPE evaluates earnings on a 10-year basis. Using CAPE, investors will find that U.S. stocks are currently expensive compared to a broad swath of developed and emerging markets. At the end of last year, Austria, Ireland and Portugal combined for nearly a third of GVAL’s weight.
“Faber expects the fund to post double-digit returns in the next three to five years, though he cautioned that all depends on global economic conditions,” according to the Journal.
GVAL Sector & Country Weights
Charts Courtesy: Cambria