US stocks being over-priced is ‘fake news’

US-stocks/global-equities/Magellan/chief-investment-officer/Hamish-Douglass/valuations/

26 October 2018
| By Mike |
image
image
expand image

It is ‘false news’ to suggest US stocks are over-priced, according to Magellan chairman and chief investment officer, Hamish Douglass.

Speaking during the Magellan Adviser Roadshow in Sydney, Douglass sought to explain his company’s continuing exposure to US stocks and examined the rationale behind claims that US stocks were over-priced, and suggested such assertions failed to take account of valuations in other markets.

“I am not arguing that the US market is cheap,” Douglass said before going on to point to the areas in which he believed value could continue to be achieved.

In doing so he compared the value of four consumer staples in the US which he noted were trading at a valuation of 18.4 times earnings and comparable companies based outside the US which he noted were trading at an average 20.9 times earnings.

Douglass undertook similar exercises with respect to technology, health care and bank stocks and noted that the US stocks were either trading on valuations either on par with their non-US counterparts or slightly cheaper.

He said there was simply not a lot of evidence that valuations outside of the US were significantly cheaper.
 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

3 weeks 6 days ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 5 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 4 days ago

TOP PERFORMING FUNDS