Our friends at Grandeur Peak, which was founded by Robert Gardiner who ran the Wasatch Microcap fund (WMICX) from 1995-2007 and returned 25% p.a. with only one down year, have credibility with us on investing. Everyone has their eye on China and may in fact be concerned that the…
Currently Browsing Global Valuations :
At current valuations on normalized earnings over the last five years, the US trades at a multiple of 19.9, International Developed markets at 15.1, and Emerging markets at 10.1. The US in relation to International Developed markets trades at a ratio of 1.33 versus an average of 0.92 since 1974….
While we continue to believe much of the developed world is currently in a mild recession there is reason to believe that near-term deflationary forces may have been reduced, at least in the short-term. Nonetheless, the preponderance of other risks and current valuations do not make this a time to take increased risk.