Is the whole market cheap or expensive?
Market valuation by sector and country, and the open data behind it.
You will learn
- How far the market trades above or below fair value
- Where value hides by sector and country
- Where to find and cite the monthly numbers
Transcript
Lesson thirteen: is the whole market cheap or expensive right now? The same fair value logic, applied to thirty-five thousand stocks at once.
The market valuation page shows how far the market trades above or below fair value, weighted by company size, and how that compares with the past.
By sector and by country you see where the value is hiding: a sector trading twenty percent below fair value while the index is expensive is where the strategies find their stocks.
The monthly numbers are published as open data with a citation line, free to use. Researchers and writers quote them; you can too.
Market timing is hard, and I don't recommend it. But knowing whether you are buying in an expensive or a cheap market changes how much safety margin you should ask for.