CHART OF THE WEEK - Global stock markets cheapened

    • chart of the week

Our major propriety composite valuation indicator was at the level of +13 % at the end of 2019 which indicated to us that global stocks markets were a bit overvalued. However due to massive sell-off from the last week, the biggest since the global financial crisis in 2008, global stocks markets cheapened decently.

CHART OF THE WEEK - Global stock markets cheapened Source: Bloomberg, Conseq

Our valuation indicator is currently at the level of +8 % which can be regarded as a relatively fair valuation. Global stock markets valuation has therefore significantly approached the level of fundaments, such as earnings or revenues. That is why we think that the mid-term outlook for global stock markets performance has improved in comparison with the end of 2019. We expect that in the mid-term horizon of the next two to three years global stock markets could bring an average annual performance of around 8-9 % including dividends.

Michal Stupavský
Investment Management Conseq Investment Management, a.s.