Value Investing in a Fairly Valued World

Investing in a Fairly Valued World via Trapeze Asset Management

A Fairly Valued World
For several years we have been arguing that global equity markets are undervalued and represent the best investment alternative given growing corporate profits (S&P 500 Index earnings have nearly doubled in the last five years), a favorable monetary backdrop and a recovering economy.

For the first time since the financial crisis we see most developed markets as fairly valued. The S&P 500 (.INX) has reached our estimate of fair value on three occasions in the last three years (after which corrections followed) but the Euro crisis desynchronized the major global markets. Eurozone markets have caught...