Share prices now suggest a favourable long-term outlook
Recent falls of between 30 and 50 per cent in share prices have now restored long-term valuation support to the Australian share market, according to Schroders head of fixed income and multi asset Simon Doyle.
Doyle told the Securitor Convention in Darwin this morning that the sector is “now at the point” on the Shiller Price Earning Model that suggests a favourable long-term outlook.
“We can be a lot more positive when thinking about Australian equities now as we’re actually starting from a point of relatively attractive valuations,” Doyle said.
“Valuations could be cheaper, but on a 10-year view valuation support is there, suggesting pretty attractive returns out of equities over the next few years.
“Certainly, in a long-term sense I am starting to be a lot more comfortable with equities than I was earlier this decade,” he said.
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