Société Générale’s Cross Asset Research department recently issued its asset allocation report titled, “100 Years of Market History in 3 Charts,” which is food for thought. Among its three front page recommendations/perspectives: 1) Long term interest rates are nearing 100-year lows; 2) Over a long investment horizon, it appears that markets are not cheap enough to spark a sustainable long-term bull market. To begin to buy for the long run, we would probably need to wait for a 3% real dividend yield and a forward P/E of 7; 3) Commodity prices appear to be much too high to invest in right now, and safe haven investments like gold are favoured.
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