World Capital Value Index represents the relative value of the world’s largest stock markets.
The World Capital Value Index rating is based on Cyclical Adjusted Price Earnings ratios, a market valuation technique for which Dr. Robert Shilling received the Nobel Prize1. The top graph represents the combined index value of the 26 markets shown in World Capital Value Index below.
The World Capital Value Index graph shows the individual country indexes and is shown as relative values. Market values tending towards 100% are most overbought and markets closer to 0% are most oversold.
The best time to invest is when the BOTH the WCVI and most markets are trading closer to 0%. Conversely, the time to be cautious is when the WCVI and most markets are trading closer to 100%.
The graph on the bottom of the page shows the historical change of each country’s CAPE ratio.