Bloomberg, Dave Wilson, Senate discussed on Bloomberg Markets


Thick clouds drake dave both in here in vows dave wilson bloomberg stocks editor column has and blogger at mlive go on the bloomberg and it is time for dave wilson's chart of the day dave what are you looking at well look at of international stocks go going the wrong way really setting up what i would call valuation paradox look at it this way the msci all country world exu s index i know it's a mouthful boob basically timeout stocks is the vaults in emerging markets outside the us they've risen more than the s p 500 this year that msci index up seventeen percent for yesterday while the s p 500 didn't even have a ten percent gate so you'd figure that if the international stocks are rising more than here when you look at their valuations there should be less of a gap with us shares because international companies historically if you look at the senate see i index they tend to traded lower price earnings ratios so you would figure the gap would be clumsy well it's not in fact it's going in the other direction which tells you there are some pretty substantial what worries growth internationally as opposed the us but i digress the p gap priceearnings gap between the msci index and the sp 500 based on projected earnings so called an estimated p racial forward p call what you will but in fact this week it got to be the widest since at least two thousand in five according to our data and i'm not the only one talking about this it came up in a report earlier this week out of riverfront investment group chris constantino's who's there director of international portfolio management pointed to this comparison as a sign that the gains were seeing in international stocks are sustainable now you could argue he's talking is book in a sense because that's the air the market he focuses on then again i mean the numbers they do word tell you a story and the idea that you can buy stocks that have risen and a relatively fast pace this year and arts still getting cheaper relative the us shares well it does enhance.

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