All other things being equal, lower prices lead to higher future expected returns. That is clearly reflected below in the relative movements since our last update. As the price action was generally weaker across the board we have not made any adjustments to the respective...
A result of the recent short term volatility and overall declines in major indices around the world are better valuations and hence improved forecast returns from these lower prices. Overall the shifts have been largely proportional relative to other asset classes. We are unfortunately in one...
A result of the recent short term volatility and overall declines in major indices around the world are better valuations and hence improved forecast returns from these lower prices. Overall the shifts have been largely proportional relative to other asset classes. The more things change, the...
As a result of an adoption of higher Price/Earnings (P/E) multiples across a range of asset classes: where ordinarily we would expect forecasts to be lower given the recent strength in Australian Equities, we continue to see this asset class in our Cheap valuation range...
It is worth noting again the divergence within International Equities. For Developed Markets we have the United States in the upper part of the Fully Priced range with relatively low commensurate returns, and most of Europe in the Cheap valuation band, though not without some...
The primary tool that the world’s central banks have at their disposal is to set short term interest rates, from which other investments are priced either directly or indirectly, using this cash rate as a reference. We often refer to it as a risk free...