Читать книгу Cotter On Investing - John Cotter - Страница 17

I think the greatest strength of the PE is as a measure of the overall market. For example, the UK market has a long-term average PE of 15, while the world market has a long-term average PE of 16. These can be used as a guide to current value, and help determine the amount of money that should be invested in the different asset classes. When it comes to geographical diversification it can also inform choice. My view is simple: the lower the PE, the cheaper the market and the greater the value on offer.

The following table lists the trailing and forward PEs of the World and UK markets as at end 2010:

	UK	World
PE (2010)	12.0	14.6
PE (2011)	10.6	12.7
Long-term average	15.0	16

Source: Factset MSCI Barclays wealth strategy

As these figures for the equity markets are below the long-term averages it would indicate to me that equities at present offer good value and therefore it is an asset class in which the investor should be overweight. This position is also supported by the following chart: