Do irrational markets call for desperate measures?
For the last month, markets have been consumed with chatter of a bubble. Are we in one? Is it about to burst? How do you avoid being stung when the bubble eventually bursts?
According to Portfolio Specialist Sam Ruiz at T. Rowe Price, you have to reflect on previous bubbles to understand how the future will play out. Referencing Alan Greenspan saying ‘irrational exuberance in the market’ in 1996, Ruiz notes that while markets look frothy and irrational at the moment, there still could be a few years left of this behaviour.
In the video below, Sam explains why the T. Rowe Price Global Equity Strategy is avoiding companies with illogical valuations; assesses the signs of a bubble; and, finally, elaborates on one little known but brilliantly positioned global healthcare company that's ready to go to the next level.
T. Rowe Price Global Equity strategy approach markets with a high conviction strategy, seeking to invest in companies with above-average and sustainable growth characteristics. For further information, please visit their website.
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