We recently sat down with Matthew Riordan, Co-Head of Australian Midcap at Paradice Investment Management, and asked him what he is currently cautious about. He is underweight domestic cyclicals and touched on the how the downturn in construction is yet to filter through and be felt by the economy. While nominating several quality Australian growth stocks, Matthew recalls the frothy markets of the late 90’s and cautions investors on the risks of losing sight of appropriate valuations today.

Some in the market are saying valuations don’t matter so much. But valuation always matters. We are concerned, these things can continue for a while… but at some stage it becomes unsustainable

Get Matthew’s view on this important issue in the video below.

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