Defensive PE at a dangerous high

Low interest rates and the accompanying search for yield have driven the forward Price-Earnings ratio for Defensives to a 20-year high. This is likely to reverse when (not if) rates eventually rise. Cyclicals and Growth, however, still look reasonable.

One thought on “Defensive PE at a dangerous high

  1. […] Shares weathered the 2008 financial crisis. Subsequent low interest rates had the greatest impact on Defensives, while Growth & Cyclicals trade at more conservative […]

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