There are three tactics patient value investors should implement now to prepare for overvalued markets to shift back to normal

Clime Investment Management

Clime Investment Management

There are three tactics patient value investors should implement now to prepare for overvalued markets to shift back to normal. Central banks have crunched bond yields to historic lows. If value investors sit the market out they earn low or negative real returns. They have also lost a reliable investment proxy - the 'risk-free-rate of return' based on bond yields - from which to assess required return and measure value. Value investors can cut the returns they expect from stocks and stay invested. But rates, markets and the $A will return to normal. To prepare, value investors should do three things: maintain high levels of liquidity; buy stocks in offshore markets with a focus on companies leveraged to Asia; and acquire Australian shares leveraged to a weakening $A. (VIEW LINK)


Clime Investment Management
Funds Management & Stock Research
Clime Investment Management

The Clime Group is a respected and independent Australian Financial Services Company, which seeks to deliver excellent service and strong risk-adjusted total returns, closely aligned with the objectives of our clients.

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.