Best Blogs of the Week #268
(Look below for a highly indicative price-to-book chart.)
Two posts this week capturing basic considerations about valuation: one for equities and one for bonds.
SSgA – Charting the Market: With Global Stocks at All-Time Highs, Where is Value Emerging? – It shows emerging market (EM) equities are the only regional equity gauge trading below their historical 10-year average based on P/B, while the US is trading at its 10-year high—although within the US there are opportunities for value, namely in financials.
Vanguard – Rates change, but the role of bonds doesn’t – Barring default, you can be certain of getting income until the bonds mature. It’s that income that drives returns for patient bond investors who resist the urge to jump in and out of the market.
