
Arnott on Bubbles and Valuation Gaps
What Goes Up
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What's the Fair Relative Valuation?
The emerging markets index was priced at 38 times the valuation, 38 times its ten year smoothed earnings. The spread between growth and value in emerging markets is an eight to one ratio. So these are terrible head winds. Five years from now, they're immunized. There is no major problem with covid supply chain disruptions are dealt with.
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