Compared to the historical average, global equities are currently moderately valued and even appear to be downright cheap compared to bonds. Till Christian Budelmann, capital market strategist at the Swiss private bank Bergos Berenberg AG, examines the current valuations using a forward P/E approach.
Are equities globally overvalued or undervalued? What is the situation in the regions of the world in this context? And what is the picture for the individual sectors? Since 2004, we have taken a uniform approach to market valuations and are currently reaching the following conclusion: Despite the upward trend in 2019 to date, equities continue to be valued more favorably on a global basis. (…)