Down under goes the ASX 200
Our developed equity markets' ranking model continues to dislike Australia driven by weaker relative momentum and above valuation. The model's favourite equity index is the AEX index, Netherlands' leading equity index.
Based on the latest incoming data, the model's current ranking can be seen in the table below. The top three continues to be dominated by European equity indices with the AEX, DAX and CAC indices leading the pack. Oceania, NZX 50 and S&P/ASX 200 indices, are dominating the bottom together with the SMI index.
Overall, valuations across all developed markets look favourable with this year's P/E ratio at 13.9x and next year at 12.4x. The price-to-cash-flow remain at historical low levels at 8.0x and the dividend yield continues to be historically high at 3.4 percent.