'Markets have continued to go up due to investor exuberance'

How is your team viewing the current market valuations and preparing for possible corrections? Right now, our valuation models are telling us that equities are not cheap and, thus, indicate that asset allocation is the best approach for investing. For the last two years, markets have not become cheaper. Instead, they have continued to go up. Given this, asset allocation has become even more important. There is a fair amount of retail and investor exuberance, which is a source of risk at this point. It is less of a fundamental problem than a retail investor exuberance problem. By spreading investments across asset classes, which can also be achieved by investing in multi-asset and hybrid strategies such a

This article was originally published on October 28, 2024.