Yearly Archives - 2022

US equities lower, but is the market cheap or expensive?

16 Sep 2022 - Valuations now are right back where they were in late 2019 however the environment was vastly different then. CPI inflation was about 2 per cent; now it’s about 8 per cent. Ten-year rates were 2 per cent, not today’s 3.5 per cent. All these contrasts should argue for a lower market multiple today than in 2019 - inflation, with its accompanying volatility and uncertainty, should compress multiples.

Read more...

Inflation data belts US equity markets

14 Sep 2022 - Stocks plummeted and US government bond yields soared on Tuesday, as fresh data undermined investors’ bets on the persistence of inflation and how much the Federal Reserve will need to raise interest rates to combat it.

Read more...