Australia is a commodity-based economy similar to Canada. Some of the major exports of Australia are coal, iron ore, agricultural products such as wheat and wool and natural gas. Accordingly the Australian equity market is dominated by mining and oil companies in addition to financials. Other than financials, investors looking for Aussie exposure may have …
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US stocks continue to remain expensive relative to other markets according to a recent article posted at Schroders. Going into 2018, US equities were expensive based on multiple metrics. So even after the decline and volatility in the first quarter of this year, valuations are not in favor of American stocks. Click to enlarge Source: Which …
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One of the main luxuries of emerging middle class in developing countries is the ownership of an automobile. Auto penetration rate is very low in emerging countries of China and India relative to the developed world as shown in the chart below: Click to enlarge Source: CPD: All aboard the new Silk Road, Adviser Voice …
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The U.S. economy’s current expansion is one of the longest in the history. The ongoing expansion phase started all the way back in 2009 and is projected to run middle of 2019. The chart below shows US expansions since 1854: Source: Global Market Perspective, Economic and Asset Allocation Views, Q2 2018, Schroders
Valuations remain elevated for US stocks. For instance, the S&P 500’s forward P/E rose above 20 going into 2018. Since then volatile and declining stock prices have pushed the ratio down to below 17. The chart below shows the S&P 500 Forward P/E Ratio since April of 2006: Click to enlarge Source: Focus on Fundamentals, Legg …
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