A combination of high stock valuations and a rapidly advancing earnings cycle increases the risk that equities sell off, according to strategists at Deutsche Bank AG.
High valuations in themselves don’t necessarily augur a large market correction, but downdrafts tend to be more pronounced when the earnings cycle is further along, a team including Binky Chadha wrote in a note Thursday. At similar levels of valuations to today, five-year forward returns have historically been slightly negative on average, they said.
September 10, 2021 at 09:59AM
https://www.bloomberg.com/news/articles/2021-09-10/deutsche-team-sees-risk-of-hard-equity-valuation-correction
Deutsche Team Sees Risk of 'Hard' Equity Valuation Correction - Bloomberg
https://news.google.com/search?q=hard&hl=en-US&gl=US&ceid=US:en
No comments:
Post a Comment