The cheapest stock markets and sectors – August 2022

6 min Read Published: 08 Aug 2022

Periodically I review global stock markets to see which offer good value based on historical data. The last time I did this was in October 2021 which, with the benefit of hindsight, was either an all-time high or multi-year high for most stock markets around the world. Since then stock markets have tumbled as inflation spiked, central banks began tightening monetary policy and geopolitical tensions rose. The chart below shows the performance of key stock markets since October 2021.

So how has stock market weakness affected stock market 'value' around the globe? In this article, I answer that question before going on to determine the value of individual equity sectors in the US. But first, let me recap on what value investing is.

What is 'value investing'

A value investor buys shares in companies that he/she believes are undervalued by the market on the assumption that when reality catches up with the company fundamentals the share price will be revalued and they will make a profit.

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