Many analysts believe shares in developed markets such as the UK are currently expensive.  But according to Robert Shiller, the economist famous for developing the Cape ratio – cyclically adjusted price to earnings – for valuing stocks, the UK Market remains ‘a great investment’.  The Cape ratio takes the current price of a stock and divides it by the firm’s relevant average earnings (profits) over the past ten years – thus providing a more accurate picture of its true value, according to its proponents.  By this yardstick, the UK Market is currently significantly cheaper than continental Europe, the US or Japan.