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The disconnect between valuations and earnings growth is becoming untenable
The disconnect between valuations and earnings growth is becoming untenable. The forward PE on the S&P500 is approaching its pre-GFC high yet sales growth remains elusive (this could be said for many markets around the world). Earnings growth to date has largely come from cost cutting but we all know that you can't cut cost to achieve prosperity. Admittedly, valuations still have not reached extreme levels but they are high enough to make us very uncomfortable. The spectre of geopolitical conflicts in the Ukraine, Middle East, East and Southeast Asia only goes to add to the overall sense of concern we have with current market conditions. Australian Ethical's International Equities Trust is thus moving into a more defensive posture. (VIEW LINK)
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Nathan Lim is the Chief Investment Officer at Lonsec Holdings. He is responsible for building and managing Lonsec’s suite of investment solutions, devising strategies for growth and acting as the liaison with the market. Nathan has industry-recognised expertise, having won multiple awards for portfolio management and fund selection in both conventional and Responsible Investment categories.
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Nathan Lim is the Chief Investment Officer at Lonsec Holdings. He is responsible for building and managing Lonsec’s suite of investment solutions, devising strategies for growth and acting as the liaison with the market. Nathan has...
Expertise
Nathan Lim is the Chief Investment Officer at Lonsec Holdings. He is responsible for building and managing Lonsec’s suite of investment solutions, devising strategies for growth and acting as the liaison with the market. Nathan has...
Expertise
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