The two dimensional chart of price to book versus ROE can give you a good idea of opportunities in global equities across countries. Hat tip to Morgan Stanley for the chart which shows how value has changed relative to ROE over the last few years. You get a clear idea that ROE are generally falling except for Japan. At the same time, there has been an increase in price to book across most countries. At best the P/B has stayed stable. The cheaper countries include: Brazil, Russia and Indonesia, but these have seen strong declines in ROE and have some unique country risks. The safe haven is the TOPIX. The controlled decline in currency with massive QE is still making the equities attractive.
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