The market correction from a value investor perspective

Livewire Exclusive

Livewire Markets

John Abernethy CIO of Clime has the following view on the Australian share market from a value perspective. “On a valuation metric it has fallen into value …the Australian market using a bond yield of 3% is presenting as good value. However, the outlook is difficult, the risk of recession is there on the table, it is not odds on but it is certainly a risk we have to acknowledge”. Abernethy highlights, that he believes that historically bond yields are too low or in other words the risk free rate of return is too low, “so your proxy for assessing value is skewiff and that’s the problem.” The overarching message communicated by Abernethy is that current prices look interesting, but there is no hurry,“because the world is in a state of flux…you can speculate your head off or you can invest. Today at these prices in Australia is not a bad time to invest…but if the market fell another 5 to 10% from here be prepared to wear it and have enough cash to access it.” See video below.


1 topic

Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.