Feb 052014
 

By Brett Arends

Buy Austria! Buy Greece! As global markets tumble, throw some of your hard-earned cash at Italy, Spain, Hungary, Russia and Turkey too!

Sound crazy? It might not be.

These unusual picks make sense based on some proprietary research conducted by Wellershoff & Partners, a financial advisory in Zurich, Switzerland.

Wellershoff has taken the money-making insights made famous by Yale finance professor Robert Shiller and applied them, not merely to the U.S. stock market, but also to the rest of the world.

euro

In other words, they’ve analyzed most of the world’s stock markets in order to find out which are inexpensive, and which are expensive, when measured using Shiller’s “cyclically-adjusted price to earnings” ratio, also known as the CAPE or Shiller PE.

The CAPE compares stock prices, not merely to this year’s per-share earnings or next year’s, but the average per-share earnings of the past decade, adjusted for inflation.

 

8 cheapest stock markets in the world – Brett Arends’s ROI – MarketWatch.