On this week’s episode of Tape Talk, Quint and Daniel discuss what investors might consider in light of recent volatility and market valuations here.
The evolving coronavirus epidemic continues to paint the headlines as more cases are reported both in and outside of China. It appears the market is still assessing just what type of impact this event is going to have in economic terms. However, investors appear to have begun taking the seriousness of the situation to heart as the market came under increased pressure as this week unfolded.
Valuations in Focus
Valuation is best described as what you are getting in relation to what you’re paying. Currently, many stocks and sectors in this market are being valued higher than their historical norms. While part of this is the result of the Fed’s easing and low interest rates, it also indicates investors are taking on more risk as they pay a greater price for each dollar of earnings.