Hong Kong's Hang Seng China Enterprises Index is the only exchange in the world that offers cheap stocks with reasonable growth potential. Photo: iStock
American stocks look bubbly. At nearly 40 times backward-looking earnings, the price-earnings ratio of the S&P 500 was higher only once in history, just before the 2000 tech stock crash. If it’s a bubble, though, it’s a rational bubble driven by two factors that are easy to visualize in the charts below. The first is […]