Country CAPE Ratio Preview: Ireland, Russia Come In Low

The country CAPE ratios researched by Mebane Faber have shown in no uncertain terms that they are a reliable pointer to under-valued or overpriced equities by country. Countries that presented low CAPE ratios as of end-2012 have generally rewarded investors with high returns during 2013 as per Mebane Faber’s analysis, and the chart below: Source: www.mebanefaber.com Country CAPE ratios are good barometers Of special interest is the fact that the five countries at the bottom of the CAPE heap as of end-2012 went on to generate 20.74% returns in 2013. Contrarily, the five countries with the highest CAPE ratios as…