Global Value Investing

[ratobranco]

I don't think emerging markets are a significant. Most of foreign S&P earnings are actually out of Europe. Emerging markets are around 18% if I remember correctly, not enough to explain almost a 3 standard deviation shift from the norm. Look at this chart:



There is no doubt IMO why margins have exploded. We've had two huge debt bubbles blown in the last 10 years. Margins have tracked the building and bursting of those bubbles perfectly.