2012 was the year for chasing yield. As the RBA reduced interest rates, investors have been pulling their money out of the banks and piling into non-mining stocks that pay high dividends. Australian stocks such as CBA, WES and TLS are currently at multi-year highs, and trading at PE ratios of 15 or higher which is no longer in value territory.
Can you find better value in the US markets? I believe so. For example, compare healthcare stock GlaxoSmithKline (NYSE:GSK) is trading at a PE ratio of 14 with CSL Ltd which is trading at a PE ratio of 29. GSK has a yield of 5.5% whereas CSL has a yield of 1.7%. If I am looking for exposure in the healthcare sector, I would choose GSK over CSL.
Disclosure: I am long GSK.