valuations

Nearly 20 years after the last technology bubble, we’re in funny season again, and you don’t need to be an economics PhD to see it. Crazy valuations are being ascribed to stocks that have never made a dollar, in the hope they’ll become like Amazon one day. Think loss making... Show More

Understanding how the cycle is progressing has been especially difficult in the post-GFC years. The apparent impotence of monetary policy via its traditional credit (and inflation) creation channel contrasts with the relative strength of labour employment. Yet monetary policy has become much more important for markets, as central banks have... Show More

Fund managers and CEOs around the world have been adjusting their estimates and guidance in the wake of the recent volatility. As defensive stocks have come back to the fore, and growth stocks have sold off, this has created an unexpected situation: based on EBITDA multiples, Amazon is currently cheaper... Show More

The message for 2019 that we should take away from the volatility of 2018 is that it is going to be a year of divided outcomes. In most years, there are always enough reasons to worry but one can also invest with a bottom-up mindset without spending too much time... Show More

There are only two times in history that the market has been more expensive than today; March of 2000, and in 1929. Students of financial history would recognise these ominous dates, as they preceded two of the largest crashes in the last 100 years. Disconnects like this require a major... Show More

There can be little doubt in any professional fund manager’s mind that prices for many companies listed on major developed exchanges around the world can only be justified by assuming rates of growth that few companies have ever sustained. Show More

10 years into the recovery, and with valuations close to or at historical highs, there’s little denying that we’re getting late in the cycle. However, Amit Lodha, Portfolio Manager at the Fidelity Global Equities Fund, says that valuations are only half the story. Key points: Valuations are never a catalyst... Show More

Over the last few years, valuations have generally become expensive in our universe of quality companies. Valuations reaching these levels remind me of the mistakes I made running into the 2008 crash. While it is hard to predict a market turn like that, some of the signs look eerily similar. Show More

All major value equity indices show that the last five years, and in particular the last 12 months, have been a challenge for value as a style. If we look at any relative valuations or relative performance between value and growth in Australia, globally or the US, we see that... Show More

The US stock market is on its longest bull-run in history. It began on 9 March 2009 and, so far, has lasted nine years, five months and 13 days. As of today, it beats the great equities performance of the 1990s. Show More