Price to earnings ratios will stop expanding as soon as the Fed tightens
The US market has never had such a long period without a rate rise – and if history is any guide – investors should not expect valuations to continue rising when the tightening begins. According to Data compiled by Goldman Sachs, PE Ratios will stop expanding as soon as the Fed Raises rates. “In the quarter after the last 12 tightening cycles began, P/Es contracted by an average of 7.2 percent.” Full article here: (VIEW LINK)
Welcome to Livewire, Australia’s most trusted source of investment insights and analysis.
To continue reading this wire and get unlimited access to Livewire, join for free now and become a more informed and confident investor.
Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.
No areas of expertise
Please sign in to comment on this wire.