Update- Market Metrics: US Listed Companies
US listed companies have rocketed upwards over the past two years with corporate profits now at historic highs (above 12% of US GDP) and price to earnings at historic highs (above 16.5 times).
Can this continue?
No but why do the valuations keep stretching?
The key driver is most likely the US shale oil and gas revolution which is reducing energy costs and could see the United States become the number one oil producing country this decade (see slide three in the attached).
You can also see that at current valuations Brazil along with the US and some other countries is very expensive at price to forward earning and price to book while Australian and China are positioned in the least expensive quadrant.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me via Contact Us or to call me on +61 2 9267 2322.
12th-August-2014 | 
