Is This Really A Bubble?

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Why This Is Not A Bubble!

 

Although we remain focussed on a potential correction in risk assets through Q2 and Q3 2021, we must stress that this is not the result of a market bubble. Bursting bubbles are bad news. Rather a less-damaging pull-back is more likely to reflect faltering liquidity. In fact, underlying valuations look moderate in our view. We acknowledge that traditional P/E multiples do appear stretched. However, P/Es are a dangerously biased tool to use at the market level and inappropriate for macro-investing. We far prefer the P/L ratio. P/L’s are not stretched but we fear that the strongly rebounding real economy will soon pull liquidity (L) away from risk assets.

 

 

See our latest published research, Global View - Why This Is Not A Bubble! – February 2021

 

For further information, or to change user options, please contact us at crossbordercapital@liquidity.com 

 

    
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Tel: 0203 954 3430   

 

  @crossbordercap

 

 

CrossBorder Capital Limited are authorised and regulated by the Financial Conduct Authority.

Registered in England. Company Number 2687676. 

 

 

 

 

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