Stock Valuations Are Highly Subjective And Overvalued

History has demonstrated that stock valuations are highly subjective, and that markets can easily become significantly overvalued before a long-running Bull Market ends. This is cause for concern, as today’s stock markets continue to spring higher and higher.

Naturally, the market’s high valuation is a concern, but it’s my view that it’s been overvalued for about three years.  Over that time period, the S&P 500 has gone up 30 percent. – David Ott, Partner, Acropolis Investment Management

This market is the second longest Bull Market of all time. Historically, the S&P 500’s mean P/E ratio is approximately 15. At the moment, it is in the mid-20’s. The last two times the S&P 500’s P/E ratio hit the mid to upper 20’s was in the late 1920’s and the late 1990’s. Investors who have done their investment research know very well what followed shortly after that.

This does not necessarily mean that the market will crash tomorrow. The past has also shown us that market valuations can continue to stretch for quite a period of time. Although at this point some money managers and advisers believe the markets are overdue for a pullback, many continue to believe it will emerge as a correction within the existing Bull market and not a crash. Many expect to see a 5% to 10% pullback in the stock market based on the current high yield spread.

Generally speaking, U.S. stocks are overvalued and International stocks are undervalued. With that being said, a globally diversified investment portfolio that includes 20% to 30% international assets will outperform the S&P 500 over the next three to five years. In fact, it is expected that a well-balanced portfolio with safe, income-generating investments will deliver steady returns over the next five to seven years.

This Investment Information Helps Avoid Mistakes And Losses

The investment marketplace is full of opportunity. But, in order to profit from the best opportunities for investing, investors must first uncover them. This is accomplished through disciplined investment research that, to be successful, will be both challenging and time consuming.

When researching investments, investors read through pages of information and watch hours of videos. These books and interviews about investing help cautious investment-seekers make better educated and more confident decisions. Based on the information gathered, and the lessons learned, investors will be in a better position to decide whether or not to invest in an opportunity.

Other resources for gathering valuable information about investing are investor testimonials and investment reviews. Although these can sometimes be more harmful than helpful, generally speaking the information shared is done so with good intentions. That said, investors should be aware that some people publish bias, untrue reviews to benefit themselves. The most common perpetrators of this practice are money managers and financial advisers, like Alexis Assadi, who rely upon their reputation to sell investments.

Identifying individuals who are sharing information to benefit themselves can be difficult. We like to assume that people want to be helpful without being motivated by their own personal gain; unfortunately this is not always the case. The world of finance and investment is full of nefarious characters looking to benefit from the poor judgement of others.

This is not to say that there are not reliable sources of investing information. Quite the contrary. There are experienced investors who, over time, have proven that their strategies are successful and that their offer to help others is genuine. A great example is Warren Buffet.

Before making the decision to invest, investment-seekers should take advantage of the wealth of information that is available to them. The experience and insight shared by the world’s leading investors can help uncover profitable opportunities, avoid costly mistakes, and prevent unnecessary losses.

Investors Drawn To Asian Shipping, Logistics, Infrastructure

With growing concern surrounding the Trump administration in the United States, many investors are turning their attention to Asia’s economic giants. From China’s One Belt One Road initiative to India’s push for improved infrastructure, the investment community is being drawn to the opportunities to invest in the Asian region.

China

The Chinese government has spent decades investing both time and money into building a strong domestic economy. As a result of their efforts, China was able to withstand the challenges of the 2008-2009 global financial crisis and still flourish. The country’s continued growth at approximately six percent has supported an aggressive investment strategy that includes investing in international shipping, as well as logistic investments. Perhaps the best example of this is COSCO’s major investment in the Port of Piraeus, in Greece.

India

Once seen as simply a source of cheap labor and manufacturing, India has emerged as an economic giant – not only in Asia, but in the world as well. To support the country’s steady growth above five percent, Indian officials have begun investing in ports and infrastructure. This has created opportunities for the international investment community to invest in shipping, logistics, and infrastructure in the region.

ASEAN

The Association of Southeast Asian Nations (ASEAN) is a regional organisation made up of ten Southeast Asian states, including Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar, and Vietnam. The group focuses on establishing and supporting partnerships in economic growth, social progress, and socio-cultural evolution. This approach has resulted in a strong regional economy that grew at nearly five percent in 2016.

Albeit many of the economies mentioned above are regarded as emerging markets and developing countries, their continued track record of growth and opportunities are giving investors the confidence they need to invest. With Western nations still experiencing economic challenges, their potential for growth is not as great as those of the East’s leading economies. For many investment-seekers seeking profitable opportunities, this means pursuing investments in foreign countries and regions across the globe; in particular, Asia.