Simple Strategy

The idea behind this strategy is that valuation levels should be mean-reverting over long periods of time. Thus, when countries are significantly undervalued, they will perform better than their peers over the coming years in order to return to their normal valuation levels.
For this study, I used the median levels of the country's valuations. I used medians instead of means since, when dealing with valuations, the median is almost always a better measure of center than the mean.


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