Glass half-full

Time to take a look at valuations of global equity markets in Jan 2024. Here the glass looks half-full. On the one hand, the US and MSCI World are close to or at the 10^th highest valuation in terms of forward price earning for the last 20 years. This is not surprising due to the high weight of megacaps in these indices. On the other hand, Europe, Japan, Asia and emerging markets trade in line with their long term average. There is still ample room to find opportunities of undervalued quality companies in equity markets.