MyStratWeekly - 21 December 2020 | Ostrum Asset Management

Visit the Ostrum Asset Management website

Please indicate your country, the language of the site and your investor profile

Country

Language

Français

English

Investor profile

Please accept the terms of use of the data

Company name
General conditions of use
Politique de confidentialité et Cookies
Personal data
Mediation

Company Name

This website was created by Ostrum Asset Management. It is managed and updated by Ostrum Asset Management.

Ostrum Asset Management

Asset management company regulated by AMF under n° GP-18000014 – Limited company with a share capital of 48 518 602 euros – Trade register n°525 192 753 Paris – VAT: FR 93 525 192 753 – Registered Office: 43, avenue Pierre Mendès-France, 75013 Paris – www.ostrum.com

Details of the regulatory authority:

Autorité des Marchés Financiers (AMF)

17 Place de la Bourse

75082 Paris cedex 02, France

Publication Director: Philippe Setbon, Chief Executive Officer. Head of Communications and CSR: Stéphanie Kowalski

Host: Alterway Hosting, 227 Bureaux de la colline, 1 rue Royale - Bât. D, 92210 Saint-Cloud

Phone: +33 (0) 1 41 16 34 95

By continuing navigation, you accept and approve the above information.

In sights

The expert magazine of Ostrum AM

Topic of the week: Stocks are too expensive? Really?

It is undisputable that stock market valuations are very stretched when compared to historical standards. Some metrics are even at an all-time high.
But taking into account the level of risk-free rates, valuations appear justifiable or even reasonable. In particular the low level of yields has a mechanical impact on the discount factor, with the consequence of lifting multiples.
Finally, we find that elevated valuations are a signal of market correction only if profits are unusually high as well. This is not currently the case.