There’s a lot of talk about how U.S. stocks have run up a lot in 2013, and that valuations are getting a bit stretched.
Right now the S&P 500 trades for a current P/E of about 19.9 and a forward P/E of 16.3 based on data from Finviz.com. And investors should easily be able to name a few stocks that trade for tremendous earnings multiples — Amazon (AMZN), Twitter (TWTR) and Tesla (TSLA) being the prime examples.
So will the run continue for these stocks? Maybe. After all, multiple expansion is the hallmark of a bull market and its not necessarily a sign of disaster to see high-growth companies trading at big valuations. I mean, AMZN stock is up 44% in the last year and 600% since 2009 with barely a downtick despite trading at a steep premium to earnings.
But if you’re an investor who wants to look for some value investments as well as some growth investments, you may have to look overseas for companies trading at deep discounts to earnings, sales or book value.
Here are 5 cheap countries to consider, and the ETFs and stocks that will let you play them — without making a single trade on foreign stock exchanges: