Hints and tips:
...Even when you adjusted for their different volatility, small-caps performed better than large-caps....
...The currency fell 10 per cent from its coronavirus peak to its low in August....
...We called up Stephen Jen, CEO of Eurizon SLJ, a hedge fund that specialises in emerging markets, to get his thoughts on the matter....
...Indeed, European equities and their global peers excluding China have been trading on the back of a company’s solvency or credit score more than conventional PE or PB metrics.. ......
...Its slowing growth in assets highlighted the challenges affecting investment companies worldwide as market volatility has returned this year....
...Indeed, China’s CSI 300 index closed at a near two-year low, and has fallen 26 per cent from its peak in January....
...The weakness in these currencies has unfolded despite a backdrop of record low levels of volatility and continued risk appetite in developed markets, he added....
...Price/earnings multiples will be low when earnings are high and expected to decline, and high when earnings are low and expected to improve....
...Nobody can disagree that this move has muddied the waters, and that it will probably contribute to volatility for a while....
...Within 10 days it had dropped more than 6 per cent to a record low of 22.03 pesos....
...Investors are braced for the pound to fall further following Friday’s sterling flash crash, fearing continued volatility will result from the government’s “hard Brexit” stance....
...Direct comparisons can be misleading, as emerging markets tend to be loaded with the kind of utility stocks that justifiably trade on a low multiple....
...He says broader financial markets are not adequately reflecting political risk and that it’s a strange time to be pricing in low volatility, when a debate is raging about the credibility of central banks...
...In the case of the metals and mining sector, the PB ratio in February touched lows not seen since 1979. Of course, there’s a reason for that....
...It was helped by record inflows into Eurizon, its retail-focused fund arm....
...“Despite the volatility we’ve seen, issuers who have wanted to access the market have found attractive windows during the course of January,” he said....
...Private investors have been trading currencies more frequently in the past few months as increased volatility has opened up opportunities to make money....
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