Market Factors: It’s Time to Hedge As Signs of Fragility Continue To Emerge

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 56 sec. here
  • 4 min. at publisher
  • 📊 Quality Score:
  • News: 33%
  • Publisher: 92%

Newsletter ニュース

Market Factors,Marketfactorsnewsletter

tk tk tk more in the newsletter

With this edition we detail a prominent strategist’s advice to hedge against another tech wreck, a surprisingly optimistic economist expecting a “new golden age” and a Spotify project identifying the most streamed albums released every year since 1960.BofA Securities U.S. equity and quant strategist Savita Subramanian advised clients to thread the needle with portfolio allocations, avoiding both megacap Magnificent Seven stocks and small caps in favour of the equal weight S&P 500.

The equal weighted S&P 500 is trading at an extreme discount to the conventional benchmark on forward PE, levels approaching the late 1990s tech bubble. But according to equity risk premium the equal weighted benchmark should trade at a 12 per cent premium PE ratio to the conventional S&P 500. Ms. Subramanian is clearly recommending clients hedge against the possibility of a painful technology slump with this report. Small caps are not a great candidate for the same purpose as, even if attractively valued on the surface, the asset class remains mired in an earnings recession. Market history also implies that small caps would be hit hard if U.S. economic recession fears intensify.

Economics is known as the dismal science thanks to its dour founding fathers like Thomas Malthus but British- Venezuelan academic Carlota Perez can offer an antidote. The University College London professor developed a comprehensive model of the economics of innovation and believes in the potential for an imminent “new golden age” thanks to the digital revolution that began in the 1990s.

 

コメントありがとうございます。コメントは審査後に公開されます。
このニュースをすぐに読めるように要約しました。ニュースに興味がある場合は、ここで全文を読むことができます。 続きを読む:

 /  🏆 5. in JP

日本 最新ニュース, 日本 見出し

Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。

Market Factors: The sell-off was likely a lucrative opportunityPlus why global asset allocations might cause more selling in equities
ソース: globeandmail - 🏆 5. / 92 続きを読む »

Market Factors: Citi’s post-selloff stock picksPlus, thoughts on what just happened in markets
ソース: globebusiness - 🏆 31. / 66 続きを読む »

Market Factors: Index investing might be riskier than it looksPlus, consumer trends don’t look promising
ソース: globeandmail - 🏆 5. / 92 続きを読む »

Market Factors: Big stock moves ahead - and the best investing paper ever writtenPlus, advice for A&W and utility investors
ソース: globebusiness - 🏆 31. / 66 続きを読む »

The 2 factors driving the market rotation: Portfolio managerThe stock market averages (^DJI, ^IXIC, ^GSPC) attempt to gain back some ground Thursday after disappointing second-quarter reports from the Magnificent...
ソース: YahooFinanceCA - 🏆 47. / 63 続きを読む »

Market Factors: ‘Trump Trades’ revisited and the false hope of AItk tk tk more in the newsletter
ソース: globeandmail - 🏆 5. / 92 続きを読む »