Authorization

A market expert lays out how the worst 'corporate inequality' in 30 years spells doom for stock returns a?? and shares his best strategy for staying afloat

A market expert lays out how the worst 'corporate inequality' in 30 years spells doom for stock returns a?? and shares his best strategy for staying afloat
Brendan McDermid/Reuters



The gap in profitability between the largest and smallest public companies is at its widest in at least 30 years, according to Andrew Lapthorne, Societe Generale's quant chief.




In a recent note, he explained why this gap is part of a bigger "valuation problem" for investors, and shared his recommendation for avoiding its fallout.




Click here for more BI Prime stories.



The stock market's ongoing rally is still missing a good amount of its most important ingredient: earnings growth.
Investors are willing to pay ever-increasing prices for stocks despite the decline in profits growth over the past year. This so-called multiple expansion has subsequently lifted various gauges of the market's valuation to unnerving levels.
Investors have an "incredible valuation problem," Andrew Lapthorne, the head of quantitative equity research at Societe Generale, said in a recent note.
See also:
Leave a comment
News
  • Latest
  • Read
  • Commented
Calendar Content
«    Сентябрь 2020    »
ПнВтСрЧтПтСбВс
 123456
78910111213
14151617181920
21222324252627
282930