Re-pricing of equity markets continues

By The Scrutineer
Updated June 3 2022 - 5:12am, first published 2:00am
The price/earnings ratio of the ASX200 is at long term averages, but most sectors still look expensive apart from Materials and Energy.

The universe of assets that have delivered positive year-to-date returns in 2022 is small, and shrinking. As has been the case for most of this year, this sub-set is largely leveraged to the commodity story. In contrast, the list of under-performing financial assets continues to grow, with defensive assets such as US Treasuries now losing as much or more than some major equity markets (such as the Nikkei). The tech sector continues to under-perform most other financial assets, except for Bitcoin.