- ITOT is a diversified source of equity beta, investing in small-caps right through to the mega-caps.
- At the moment, from a valuation perspective based on earnings projections roughly in line with the consensus, the implied equity risk premium is well above what I would consider normal.
- Therefore, recent share price declines are likely to be met with a continued resurgence. I would not rule out all-time highs being achieved in 2022 once again.
- However, we will need to continue to monitor equity markets for the possibility of tighter valuations and/or recession risk (in the later stages of the business cycle).
For further details see:
ITOT: Strong Potential Returns In 2022