Over the past 100 years, equity investors have managed to generate real capital growth of about 7 percent annually. No other form of investment - whether bonds, cash, gold or real estate - offers comparable return potential.
But does it still pay to invest in equities at this point in time, and what returns can investors expect in the long term? StarCapital determines the relative attractiveness of 6,500 companies from 66 countries in 13 regions and 39 sectors on a monthly basis.
Academic research has shown that undervalued equity markets have achieved higher future returns in the long run than their overvalued counterparts, which holds for different valuation measures alike. More detailed information is presented in our research paper Predicting Stock Market Returns Using the Shiller-CAPE: An Improvement Towards Traditional Value Indicators? (SSRN version).
The following world map displays current valuation measures in different regions. You can zoom into regions by using the buttons above the map, and change the valuation measures for the selected region by using the buttons below the map. Which future performances may investors expect? CAPE-based long-term performance forecast are presented here.
