He teaches the corporate finance and
equity valuation courses in the MBA program.
He teaches the corporate finance and
equity valuation courses in the MBA program.
Not exact matches
Of
course, that final line — that there is a new, higher «equilibrium
valuation of
equities» — is surely to remind some market historians of Irving Fisher's famous line that stocks had reach a new «permanently high plateau» on the eve of the 1929 stock market crash which ushered in the Great Depression.
With the correction in global stock markets still running its
course, it's worth surveying some
valuation statistics across Developed Market
equities.
Of
course, starting
valuations always matter and one reason why returns for all
equities are so modest is because
valuation was sky high at the start of the time period.
Equity valuations are now extremely high, with global equity markets having added close to US$ 9.5 tn in market capitalisation over the course of
Equity valuations are now extremely high, with global
equity markets having added close to US$ 9.5 tn in market capitalisation over the course of
equity markets having added close to US$ 9.5 tn in market capitalisation over the
course of 2018.
Of
course, when the underlying ratio is high, it implies that people are attributing high
valuations to
equities relative to other assets, and vice-versa.