At least we’re not the only ones.
Emerging markets are trading at the same multiple as developed markets, writes Dresdner Kleinwort’s James Montier in his latest Global Equity Strategy missive to clients. The Dresdner man is worried that he might be losing the plot.
This, demonstrated by the chart below, is troubling - as far as he can remember, that didn’t even happen during the last great emerging market boom of the early 1990s.
The dash to trash remains the name of the game, he adds, exhibiting the kind of wide-eyed horror bordering on despair that is the occupational hazard of today’s market bear.
All this looks like a bet on the death of the business cycle, and a punt on cyclicality being the new “growth.” I prefer to buy cheap assets and hold them for the long-run. Call me old fashioned, if you will.
Dresdner Kleinwort clients can get access to the firm’s research database here.
