Stock Valuations and Returns in 2015

Most global stock markets got spanked in 2015.  The average country lost about 10% (USD based investor.)

Using a value approach worked well however.  The cheapest third of global stock markets outperformed the most expensive by about 5 percentage points.  That is why I say value investing is as much about avoiding the expensive stuff as investing in the cheap…You still lost money though!

Below are the markets (as ranked by a valuation composite of long term ratios like CAPE) I sent to the Idea Farm at the start of the year.

I’ll send the new valuation ranks out to the Idea Farm list later this weekend.