Is The UK Market Overvalued?

P/E ratio The price-to-earnings ratio compares a company's share price with its earnings. And in this case, takes an average for the whole stock market. The FTSE 100 PE ratio presently stands at 15, and the FTSE 350 (an aggregation of the FTSE 100 & FTSE 250) trades on 16 times earnings, matching its long-term…

Global equity markets are behaving irrationally

The sharp falls in global markets over the last month are due to more excessive fear and herd behaviour than any shift in economic and corporate fundamentals. Since their highs in July global stock markets have fallen by more than 20%, driven by a swathe of negative economic data, growing anxiety over sovereign debt and…