Global Equities Cheap Based on PE, EM Cheapest Since 2004

Barclays analysts Dennis Jose, Joao Toniato, Hajime Kitano and Barry Knapp take a look at the global equity scenario and prefer to look beyond the U.S. for opportunities.

Specifically, they find emerging markets Europe and Japan as being worthwhile investing destinations—of course, for differing reasons.

Global equity: Key rationale

Stocks, as an asset class, still offer scope for appreciation, and are steadily closing the gap with bonds.

Also, on a global basis, stocks are still below the long-term PE ratio average, allowing room for improvement in prices.

However, U.S....