US stocks being over-priced is ‘fake news’

US stocks global equities Magellan chief investment officer Hamish Douglass Magellan Adviser Roadshow valuations

26 October 2018
| By Mike |
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:


Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry



Old Fella

Of course a survey commissioned by an adviser coaching business would find that having an external business coach is a k...

11 hours ago
One foot out the door

A financial planner is expected to earn between $95,000 and $120,000 per year, depending on the state. Really? I don't...

21 hours ago

The whole thing is a bit frightening especially the last note where notes on what might be done could result in the need...

1 day 17 hours ago

ASIC has cancelled the AFS licence of a Sydney wealth firm, the fifth Sydney firm to see a cancellation since the start of the year....

1 week 6 days ago

A former financial adviser has been banned by ASIC from providing financial services for inappropriate advice, among multiple breaches....

4 weeks ago

More than 20 winners from the funds management industry have been crowned at this year’s awards....

6 days 19 hours ago