An Alternative ‘Liquidity’ Valuation Framework shows World equities underpinned

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Are Equities Cheap…. Or Are They Going Up?  An Alternative Valuation Framework

 

Traditional investment analysis focuses on aggregate 'valuation' (P/E) and the business cycle to capture earnings (E). It has a dismal track record. Our alternative approach looks to the liquidity cycle (L) and the behavioural factors that determine asset allocation (P/L). This alternative valuation framework focuses on macro-valuation shifts. It asks not whether a market is 'cheap', but whether investors are positioned too 'risk on' or too 'risk off', given their access to liquidity?

 

 

See our latest published research, Global View: Are Equities Cheap…. Or Are They Going Up?  An Alternative Valuation Framework - 25th May 2023

 

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