ETF Securities Equity Research – Don your CAPE to outperform
Summary
CAPE serves as a more effective valuation metric in forecasting long term equity market returns relative to its 12-month trailing PE
The wide gulf in valuations of global equity indices provides investors an opportunity to outperform global benchmarks by increasing exposure to cheap countries while reducing exposure to expensive countries.
A simple active strategy used in the CAPE model has successfully outperformed global benchmarks over the past 11 years by an average of 1.8% annually.
For more information contact:
ETF Securities Research team
ETF Securities (UK) Limited
T +44 (0) 207 448 4336
E infoUK@etfsecurities.com
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