FT.com / Columnists / Martin Wolf - Why fairly valued stock markets are an opportunity:
Great article about the valuation of today's market. I have been using the modified PE described in the article as my guide in valuing the market and as the article details the valuation of this market has not been seen in a long time.
Since the end of last month, I have been buying more of the market indices, like Emerging Markets index (EEM) and Russell 2000 (IWM). I have also bought Brookfield Asset Management (BAM) preferred shares, which I made the case for here.
There are great bargains especially in fixed income markets. I can say that in the fixed income universe you can find compelling risk/ reward propositions than in the equity markets, the BAM preferreds are such an example. I will have a future post talking about these opportunities.