Brooks Macdonald's Park: 'Near-term US recession fears are too pessimistic'

Edward Park of Brooks Macdonald

Edward Park of Brooks Macdonald

As we begin 2019, there are several key risks facing global asset markets.

These are the US-China trade negotiations, the extent of any US economic slowdown and US Federal Reserve policy tightening. In December, investor sentiment was impinged by a combination of these factors.  The extent of the end-of-year slump caused investors to reassess valuations within the US market. The market's 12-month forward price-to-earnings ratio was around 18.5x in January 2018, but this had dropped to around 14x by the end of the year, equating to a fall of around 25%. Is the US/China trade truce in jeopardy? This shows that not only had prices fallen in 2018, but this...

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