Of course, using another time horizon (not going back to 1973) will probably give a completely different result. If we instead use the historical perspective of 10 years, half of the valuations metrics will probably end up on the right side of the historical mean. The last 10 years however have been filled with interventions and historically low interest rates. Therefore, it is perhaps more fair to include periods of historically high interest rates, ie, choosing a longer term perspective going back to 1973 (but most strategists don’t do that).

Valuation Metrics

Measuring Risk


2 thoughts on “Valuation

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