SLVO - Buy Low Sell High
2024-02-14 04:50:00 ET
Summary
- Crescat is a global macro asset management firm. We develop tactical investment themes based on proprietary value-driven models. Our mission is to grow and protect wealth by capitalizing on the most compelling macro themes of our time.
- While our concerns are fueled by the pervasive speculation in the US stock market, there also exists a parallel narrative where long-neglected economies present themselves with exceptional value and promising growth opportunities.
- Today’s stark divergence in valuation metrics globally highlights the potential for investors to uncover compelling opportunities in undervalued regions and industries.
- The shifting dynamics of capital moving away from crowded equity and fixed-income holdings, as investors seek new investment opportunities, could have profound implications in financial markets.
The current macro environment across global equity markets presents a sharply divided investment setup for 2024 and the remainder of the decade. While our concerns are fueled by the pervasive speculation in the US stock market, there also exists a parallel narrative where long-neglected economies present themselves with exceptional value and promising growth opportunities.
Utilizing Warren Buffett’s preferred valuation indicator, it becomes unmistakable that US stocks not only sit at historically expensive levels but also are the most overvalued among 28 of the world’s largest economies. In our strong view, investors buying US equities are currently undertaking unjustified risks amid dangerously inflated valuations.
Equally relevant, but on the positive side, observe the prevalence of economies with notably low valuations that also possess substantial exposure to broad commodities that have a favorable supply and demand outlook. South America, in this context, stands out as a resource-rich region with incredibly undervalued markets, especially when juxtaposed with the US....
Buy Low, Sell High