Are Australian equities overvalued
Are Australian equities overvalued? Some market watchers are concerned we're ripe for correction, with the ASX200 now trading above its long-term historical average on PE terms and reaching towards its 2011 historical highs, while yields are now below 4%. If we consider current interest rates - which are at historical lows - then elevated equity valuations do not seem so surprising. In addition, corporate earnings are reasonably predictable at the moment and provided around 10% earnings per share growth last financial year, while industrial stocks returned roughly 4% yields. That equates to double digit returns - attractive in a low-growth world. But is a significant correction imminent, and are we looking at a bear market? Click here to find out from Portfolio Specialist Chris Adams (VIEW LINK)
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