Given
the extremely rich valuations we've observed since the late - 1990's, and the fact that the S&P 500 has achieved very little net return over this period, our approach has been generally defensive.
But regardless of the answer, recognize that
extremely rich valuations will still be associated with dismal long - term expected returns.
All three boast
extremely rich valuations.
Not exact matches
A reminder on interest rate front - it's essential to recognize that if one believes depressed interest rates «justify»
extremely rich equity
valuations, what one is really saying is that depressed interest rates «justify» dismal subsequent returns on stocks.
Essentially, this is equivalent to saying that investors have shifted toward risk aversion in an environment where
valuations are
rich and risk premiums are
extremely thin.
Even at historically
rich valuations, Hong Kong's office market is
extremely active while investors in the retail market are waiting for clearer signs of a turnaround before committing.