No bargain yet
Jun 20, 2022
With the S&P 500 down 22.9% and Nasdaq down 31% since the beginning of the years, we read more and more comments about the opportunities to buy the dip in the expectation of a quick rebound. It needs however be stressed that the US market remains almost one standard deviation more expensive than its trend line over the last 100 years when looking at normalized, inflation adjusted price-to-earnings ratio. While we are constantly screening for new investment opportunities in the markets, we shy away from qualifying equity markets as a bargain overall like after the Lehman crisis.