Catch-Up

We want to make the point again that the valuation opportunities in equities currently lie outside of the US. While we showed Price/Earnings and cyclically adjusted Price/Earnings in the past to demonstrate this, today we show Price/Book. On this measure, Rest-of-the-World equities ( including mainly Europe and Japan ) are at their biggest discount to US peers since the dotcom crisis. European stocks strongly rebounded y-t-d as the energy crisis eased, we tend to believe however this is just the early phase of the catch-up.