@1ronnie
Hi,
Fully agree with your cautious stance on the market, when I look at Shiller PE ratio.
However, there is 1 sector which looks interesting to me at the moment : asset managers.
Probably counter-intuitive as stocks could probably decrease further.
However, there are several elements interesting in this sector :
- valuations have decreased significantly (not rare to find PE of 10 x or less),
- despite market conditions, some companies are able to get significant net inflows (ex. MA Financial or Regal recently),
- even more surprising, some companies are able to increase their average management fees (ex PNI or MA Financial) thanks to a mix improvement,
- last element : there is an acceleration of consolidation in the sector (cf potential acquisition of Pendal and Perpetual, merger VGI/Regal).
