Covid-19 Business Watch
WATCH: Bonds, budgets and bubbles
Michael Avery talks to a panel about the week's market activity and the budget
26 February 2021 - 15:24
Are we in a stock market bubble? And if we are, what should investors do about it? Historically, it’s always been hard to know how far a bull market can go. And value has proven to be a very weak read on which to lean, because value can go up and up.
The nightmare for any value manager is Japan in 1989, when the price-earnings ratio went to 65 times. It had never previously been over 25 until that cycle. But bond market moves this week have made investors nervous that the frothy parts of the market could be the first to go in panicked selloff. ..
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