One of our favorite valuation charts for global equities, this one shows the PE10 valuation metric (price divided by rolling 10 year average of trailing earnings). Following the global equity market correction (which still seems to be underway for some countries/regions), there has been relatively little change to the overall picture. On the latest numbers, the US PE10 fell 1 point or 3% from the January peak, DM Ex-USA fell -1.2 (-6%), and Emerging Markets fell -1.5 (-10%). It’s quite interesting to note how the EM PE10 fell the most, and now it is trading at about a 50% discount vs USA and a 23% discount vs developed ex-USA. However as I noted in a broader look at EM equity valuations, the valuation case for EM equities is only compelling on a relative value basis. And even then, emerging markets are currently coming under pressure as the stronger US dollar and Fed QT makes its impact felt.