Chart of the day
S&P300 with forward PE bands shows that the market reached fair value at the lowest point yesterday before rebounding to close positive. The market recovery from fair value happened in the middle of global selloff and before China announced their stimulus package. The market has been willing to support this valuation level on the yield thematic basis since 2012. The expected global growth downgrades, low interest rates and falling currency will continue to set the argument for holding Australian equities in the long term despite short term volatility.
Over 25 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...