Little room for error

To kick off the new year, Talaria Co-CIO Hugh Selby-Smith talked about the state of the US market and that going forward investors should avoid overvalued sectors and focus on assets with strong fundamentals and cheap starting valuations.

In the Australian Financial Review he commented that this was because he believed the rally in US equity markets had been fuelled by the ballooning valuations of a small number of companies rather than solid earnings growth. That dynamic, created significant risks for investors.

In the Investor Daily article, Hugh added that “In uncertain markets, resilience and diversification are key, and at today’s valuations, there is little room for error.”

Read the full versions of both article below:

AFR
Investor Daily