14 Apr The importance of starting point valuations for investment returns
Key Points:
- Starting point valuations – like yields and price to earnings multiples – are a key driver of potential medium term investment returns.
- For growth assets it’s often more complicated with, eg, the level of interest rates playing a big role.
- At present valuation starting points for term deposits and bonds suggest low medium-term returns. For shares they suggest better but still constrained returns.
