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COVID-19 sharpens investor focus on sustainability

COVID-19 sharpens investor focus on sustainability
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Investor Study , முதலீட்டாளர் படிப்பு ,

Are any stock markets cheap going into 2021?


Are there any mitigating factors?
To an extent, yes. The trailing price/earnings multiple has been distorted as earnings collapsed last year due to the pandemic. Its a similar story for dividend yields, with companies having slashed dividends.
This always happens when there is a negative shock to the system – for example, during the great financial crisis, the trailing P/E peaked in December 2009, not at the market peak. In the Dotcom boom, the trailing P/E did not peak until more than two years after the market had done so.
This apparent distortion happens because markets are forward looking, so care about where earnings will be in future, not the past. They anticipate a recovery in earnings and start to price that in well before it actually happens. This can lead to a rise in prices even while earnings are falling. The trailing P/E can give a misleading “sell” signal in such circumstances. ....

United Kingdom , Robert Shiller , Country World , Investor Study , Professor Robert , ஒன்றுபட்டது கிஂக்டம் , ராபர்ட் ஷில்லர் , நாடு உலகம் , முதலீட்டாளர் படிப்பு , ப்ரொஃபெஸர் ராபர்ட் ,