Crisis or no crisis, there will remain a lingering belief that the JSE must, in the foreseeable future, undergo a meaningful downward correction CRISIS or no crisis, there will remain a lingering belief that the JSE must, in the foreseeable future, undergo a meaningful downward correction.By now even the most optimistic investor would be surprised that the upward market momentum has stretched so far. It’s difficult to argue against the "expensive" tag that is being slapped on the market when the average earnings multiple hovers around 20 times — especially at a time when the fundamental underpins in local and global economies are brittle.The perceptions of overly demanding market ratings, of course, can be further refined when taking into account the multiples accorded to the handful of large blue chips driving the JSE’s all share index persistently higher. Pharmaceutical giant Aspen sits on a heady 32 times earnings multiple, while luxury brands conglomerate Richemont (30 times), n...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.