"Predicting Equity Returns for 37 Countries: Tweeking the Gordon Formula"
Publication
, Journal Article
Reinker, KS; Tower, E
Published in: Journal of Investing
July 2003
Recently, there has been a lot of discussion about whether and how much the U.S. stock market is overvalued, leading some economic gurus to suggest that foreign markets may be good investments. We ask whether this is the case and apply the Gordon formula to predict future real rates of return on three Morgan Stanley Capital International indices and 37 individual country indices. Our conclusion is that, as a whole, foreign markets do indeed promise significantly higher future returns than the U.S. market does, suggesting that an increased focus on international diversification by investors and fund managers could be beneficial. JEL classification: G11 & G12.
Duke Scholars
Published In
Journal of Investing
Publication Date
July 2003
Volume
13
Issue
2
Start / End Page
21 pp.
Citation
APA
Chicago
ICMJE
MLA
NLM
Reinker, K. S., & Tower, E. (2003). "Predicting Equity Returns for 37 Countries: Tweeking the Gordon Formula". Journal of Investing, 13(2), 21pp.
Reinker, Kenneth S., and E. Tower. “"Predicting Equity Returns for 37 Countries: Tweeking the Gordon Formula".” Journal of Investing 13, no. 2 (July 2003): 21pp.
Reinker KS, Tower E. "Predicting Equity Returns for 37 Countries: Tweeking the Gordon Formula". Journal of Investing. 2003 Jul;13(2):21pp.
Reinker, Kenneth S., and E. Tower. “"Predicting Equity Returns for 37 Countries: Tweeking the Gordon Formula".” Journal of Investing, vol. 13, no. 2, July 2003, p. 21pp.
Reinker KS, Tower E. "Predicting Equity Returns for 37 Countries: Tweeking the Gordon Formula". Journal of Investing. 2003 Jul;13(2):21pp.
Published In
Journal of Investing
Publication Date
July 2003
Volume
13
Issue
2
Start / End Page
21 pp.