Are Australian equities overvalued

Pendal Group

Pendal Group

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)


Pendal Group
Pendal Group
Pendal Group

At Pendal Group, our vision is to combine the benefits of our strong institutional foundation and performance-focused culture with a multi-boutique specialist investment approach. We believe this approach firmly positions Pendal to achieve...

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