Be cautious when looking at broad market valuations - stock weightings on the ASX can paint a skewed picture

Be cautious when looking at broad market valuations - stock weightings on the ASX can paint a skewed picture. Justin Braitling, CIO at Watermark Funds Management, says the Australian market is showing signs of fatigue. Many investors and market participants have sighted the lack of volume and investment ideas as a sign that valuations look full and there is a lack of turnover in portfolios. In this short video Braitling explains why looking at broad market or index valuations can skew investor perceptions. When you look at the average valuation of the ASX300 we are now at record levels over the past 30 years. Braitling says this provides some backdrop to the extreme valuations we are now seeing as well as the fact that stock pickers are struggling to find new ideas. Watch the video here: