The rise and rise of high PE

Avoca Investment Management

We have been cautious on the (inflated) prices of quality / long duration equities for the past two years. Over this time, the valuation metrics of these quality equities have gone up, in some cases dramatically. The metrics of pretty much every other equity style (e.g. industrial cyclicals) have remained... Show More

The winners and losers from rising growth

Avoca Investment Management

During the month of January, equity investors showed little apparent concern for value. As we write this report, the market is becoming increasingly concerned with nascent inflationary signs and rising interest rates. The momentum of investor fuelled, low volatility / low interest rate trade that has grossly inflated pockets of... Show More

The growth stocks vulnerable to a selloff in 2017

Avoca Investment Management

Back in February 2016, Jeremy Bendeich from Avoca Investment Management shared his list of stocks that were vulnerable to earnings misses, which formed a handy acronym - ‘BITBAD’. Blackmores, IPH, TPG, Bellamy’s, A2 Milk, and Domino’s Pizza. Since then, four of the six are down more than 20%. A simple... Show More

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