Prior to the March sell off this year, our flagship fund held almost 30 per cent in cash and our small companies fund held more than 40 per cent in cash.
In December/January the ASX200 Industrials Index was trading at a record 26 times 12-month forward earnings. At the same time, one-year-forward earnings estimates had been declining since July 2019. In my three decades investing I have not seen such a picture being sustained for very long, and while we didnt predict Covid-19 would be the event that burst the bubble, in March in popped.
Today, the equities market is similarly dislocated from earnings. Indeed the uncertainty around earnings is so extreme that more than 200 Australian companies have pulled guidance, unable to offer invest…
Read the full article at: https://www.professionalplanner.com.au/2020/06/has-the-market-dislocated-from-reality-again/
