May 23, 2014
Our prior article presented evidence that valuations have had a huge impact on returns and risk when investing in the US stock market. In this article we look at a study that takes a simple approach to testing the importance of valuations for global investors, and shows that buying the countries with the lowest valuations has performed far better than the "buy and hold everything" approach.

Cheap markets return more than buy and
hold, which returns more than expensive markets.

(read more)
Nov 18, 2013
"Headline risks" have been practically constant through the ages, but for all the hype they generate, they've rarely had much lasting effect on market outcomes. Investors' eventual results have been far more influenced by valuations: whether the investments they were buying were cheap or expensive compared to their economic fundamentals, based on a reliable and consistent measure of value.

Valuations and subsequent returns

(read more)