TSX:AX.PR.E - Post by User
Comment by
DZtraderon Jul 05, 2024 8:31pm
66 Views
Post# 36120756
RE:Risk Premium // Valuations
RE:Risk Premium // Valuations
Hey Frankie, you would know better than most that everything always comes back to fundamentals. As for risk premium being so low, while this may well be true it does seem offly skewed. This whole move in the market (S&P) has been made by a handful of stocks (we all know which ones). In fact I think they trade at about a 28 multiple (trailing)!! Not that you should, but if you back these out, I think I heard the balance of stocks would actually be down close to 1 percent. Haven't looked at their multiple of late but don't think it is overly rich so how does that risk premium really apply. This seemingly is a real tale of two markets. Growth going to keep on chugging till they stop. The big question I have is, when these "roll over" for lack of a better term, do we then see a rotation into the laggards like reits and growth as interest rates decline? Have a great weekend, enjoy the popcorn.
DZ