Lowest CAPEs Across The World: Focus On Russia

An advance peek into the CAPE ratios that could figure in Mebane Faber’s year-end country-wise outlook is an eye-opener.

The table below shows the 10 most cheap and expensive countries according to CAPE valuations as on December 31 last year, and their return to date in 2013.

The USA already ranked among the pricier markets based on a CAPE valuation, but the solid returns during 2013 have added to its valuation.

“Notice the big outlier in the expensive country bucket (the US). Due to all of the expensive countries declining and the US appreciating, we are now the most expensive in the world,” say Mebane Faber.

Cape valuations and returns

It...