Foreign Markets

Story and graph in London's Telegraph that ran yesterday tailing about which world markets are cheap on a relative basis.  You can go read the article here but if you want a quick take away, you can just simply note that green is cheap and red is expensive in their eyes.  By that regard the US is expensive and Asia is cheap.   

Foreign markets have started to outperform their US counterparts this year but substantially lagged in 2013.  We've been talking about this for for over a year and you can read some of those thoughts  here, here, here, here and here.  I thought these markets were attractive over a year ago so you can see how long it can take for an idea to potentially pan out.  Only time will tell if this move into foreign markets has legs or if it simply represents a catch up phase.  It may take a correction to see if a move into markets overseas has legs.

*We are long certain ETFs related to foreign markets in client and personal accounts.  Please note that these positions can change at any time and we are under no obligation to inform you when such changes occur.