With the world seemingly of the belief that the US is the cleanest dirty (it is not) [3], we thought it might be useful - should you have money burning a hole in your sidelines pocket that 'needs' to be invested in stocks - to at least comprehend how rich or cheap the rest of the world is. UBS global equity strategy heat-map below identifies the most expensive (red) and cheapest (blue) sectors across 20 regions (and the aggregate) in one easy pocket-size cocktail-party-usable cheat-sheet. The US currently is most expensive and intriguingly Australia the cheapest relative to their own historical valuations.
(click image for large legible version)
[4]
Notes;
Dark blue (very cheap) = current relative valuation < -1.5 standard deviations from historical average.
Light blue (cheap) = current relative valuation between < -1.5 and <-0.75 standard deviations from historical average.
No colour (neutral or N/A) = current relative valuation between > -0.75 and <+0.75 standard deviations from historical average.
Peach (expensive) = current relative valuation between > +0.75 and <+1.5 standard deviations from historical average
Red (very expensive) = current relative valuation between > +1.5 standard deviations from historical average
Source: UBS research.