After the sharp sell-off across global equities so far this year, almost all of the world’s equity markets are cheap, trading below their average 10-year price-earnings (PE) valuation measures. However, a global recession is looming for 2023. Is now a good time to buy equities to take advantage of attractive valuations, or is it best to wait to see? 

It’s true that global equities are cheap at face value: for example, the MSCI all country world index was trading on a forward PE multiple of about 14 times at end-September compared with its 10-year average of about 17 times, and the MSCI emerging markets index was on a 10 times PE versus its 13 times 10-year average. Most of the equity markets of the largest developed countries such as the US, UK, Europe and Japan are all valued well below their longer-term averages. ..

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