At current valuations on normalized earnings over the last five years, the US trades at a multiple of 19.9, International Developed markets at 15.1, and Emerging markets at 10.1. The US in relation to International Developed markets trades at a ratio of 1.33 versus an average of 0.92 since 1974. This suggests international markets are due for a catch up. Long-term investors should consider this when looking at their asset allocations.
