David Rosenberg: It’s time to deploy profits from the U.S. stock market to the TSX

The valuation on the S&P 500 is now almost in the 20% most expensive of all time. History shows that now is not the time to be chasing the excessive price.

By far the cheapest sectors in terms of current valuations benchmarked against their past are energy and the real estate investment trusts. Health care and communication services are basically at fair-value and that is about it.The S&P 500 is one of the most intriguing stock market indices in the world and contains a wide gamut of high-quality companies.

While we have been and remain bullish on Japan and India as these two countries undergo a re-rating of their valuations for appropriate structural reasons, as far as cheap goes — you can pick up the Hang Seng right now at a rock-bottom 9x multiple or close to where the S&P 500 traded in August 1982, ahead of a nearly uninterrupted two-decade bull market. Only 5% of the time historically has the Hong Kong benchmark been this inexpensive.

Perhaps Emerging Markets are too risky for you. And it should be the case that U.S. multiples scare you right now. Much of Europe does look pretty attractive, I have to say, but it has a central bank riding the dogma wave and inflation is proving intractable. The latest data do suggest that the recession that did not come to Europe in the winter is now on its way.

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Energy stocks help lift S&P/TSX composite as oil tops US$70 a barrel | Globalnews.caEnergy stocks help lift S&P/TSX composite as oil tops US$70 a barrel
Source: GlobalNational - 🏆 81. / 51 Read more »

S&P/TSX composite down nearly 100 points as tech stocks fall, U.S. stocks also lower | Globalnews.caS&P/TSX composite down nearly 100 points as tech stocks fall, U.S. stocks also lower
Source: GlobalNational - 🏆 81. / 51 Read more »

Energy stocks help lift S&P/TSX composite Tuesday as oil tops US$70 a barrelGains in energy and battery metals helped lift Canada's main stock index higher Tuesday as the price of oil also rose above US$70 a barrel.
Source: CTVNews - 🏆 1. / 99 Read more »

TSX recap: Index finishes 0.25% higher amid gains in energy stocks - BNN BloombergGains in energy and battery metals helped lift Canada's main stock index higher Tuesday as the price of oil also rose above US$70 a barrel.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

TSX today: Index down nearly 100 points as tech stocks fall - BNN Bloomberg​Canada's main stock index was down nearly 100 points, as losses in the technology sector helped lead the way lower, while U.S. stock markets fell in afternoon trading.
Source: BNNBloomberg - 🏆 83. / 50 Read more »