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US Equity Valuations: Difference between revisions
→Analyst Opinions
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== Analyst Opinions == | == Analyst Opinions == | ||
Valuations Concerning: | |||
* Morgan Stanley (March 2023) : In fact, over the past two decades, this risk premium has sat between 300 and 350 basis points; currently it’s at 167. This isn’t much different from what an investor might expect to earn from investment-grade credit, which generally is considered less risky than stocks. Investors can perhaps afford to look past inflated valuations when economic fundamentals are hitting bottom, monetary policy is loosening and market expectations are low, we are not in such environment. <ref>https://www.morganstanley.com/ideas/equity-risk-premium-low-q1-2023</ref> | * Morgan Stanley (March 2023) : In fact, over the past two decades, this risk premium has sat between 300 and 350 basis points; currently it’s at 167. This isn’t much different from what an investor might expect to earn from investment-grade credit, which generally is considered less risky than stocks. Investors can perhaps afford to look past inflated valuations when economic fundamentals are hitting bottom, monetary policy is loosening and market expectations are low, we are not in such environment. <ref>https://www.morganstanley.com/ideas/equity-risk-premium-low-q1-2023</ref> | ||
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Valuations not concerning: | |||
* Bill Ackman ( Sep 28, 2023, 8:00): Despite thinking that yields will increase even more and that inflation will be structurally higher, he thinks there is still value in companies that can have pricing power in this new environment. <ref>https://www.youtube.com/watch?v=TrDI3QDFh0A</ref> | * Bill Ackman ( Sep 28, 2023, 8:00): Despite thinking that yields will increase even more and that inflation will be structurally higher, he thinks there is still value in companies that can have pricing power in this new environment. <ref>https://www.youtube.com/watch?v=TrDI3QDFh0A</ref> | ||
== References == | == References == | ||