VALUATIONS: MARKET VOLATILITY,
MARKET OPPORTUNITY
‣ Markets tend to lead the economy, moving higher in advance of
the turn in economic data
‣ In periods of heightened uncertainty, assets should remain
volatile; volatility can serve up opportunities when prices dislocate
too far from long-term value
‣ Focus on long run earnings and cash flow generating abilities of
businesses, balance sheets and liquidity
‣ The market went into the coronavirus led selloff at a very high
valuation relative to historical levels
‣ Trying to predict market tops and bottoms is an impossible task
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