Equity Valuations Have Become Expensive

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Equity Valuations Have Become Expensive

Our Z-score valuation indicator is based on carry measures for each risk premia. When a risk premia’s carry is low (resp. high) from a historical perspective, or from a cross-asset perspective, our signal says the risk premia is expensive (resp. cheap). After the fall in equity markets in Q4 last year, the equity risk premia was “cheap” in this scoring metric. After the rally of the last couple of months, this is no longer the case: valuation is no longer expected to be supportive for growth assets.


20190305 Chart of the Day - Valuations - Web new
Unigestion, based on Bloomberg data as at 05.03.2019.


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