Today, we’re going to look at updated CAPE data from Swiss consultancy firm Wellershoff & Partners Ltd to compare stock values across all major world markets and forecast returns over the next five years.
The above edited excerpts and the copy that follows, is from a posting* by HERE.(charlessizemore.com) originally entitled CAPE and Expected Returns by Country which can be seen in its original format
Most global stock values suggest solid, if not quite spectacular returns, over the next five years, as can be seen in the table below, with developed markets priced to deliver returns of about 7% per year over the next five years. This is not a “back up the truck” opportunity, but it’s not bad either, particularly given how unappealing bonds and cash are at current yields.
|Developed Markets||Historical Avg CAPE||Macroeconomically Adjusted CAPE||Current CAPE||Predicted Real Return Next 5 Years||Predicted Annual Real Return|
|Developed Markets Avg||22.22||17.35||32.83||5.84|