US equities still undervalued - Peter Garnry, Saxo Bank Head of Equity Strategy. Some commentators believe US equities are dangerously overvalued, and this...

US equities still undervalued - Peter Garnry, Saxo Bank Head of Equity Strategy. Some commentators believe US equities are dangerously overvalued, and this appears to be the case when comparing ratios. However, Saxo Bank Head of Equity Strategy Peter Garnry disagrees, pointing out the biases inherent when comparing market value to nominal GDP, and market value to S&P 500 revenue. On this basis markets look overvalued but on a price to cash flow ratio, actually appears undervalued. Either way, he warns investors that data quality and comparability of valuation metrics is often overlooked, and encourages them to crunch their own data. (VIEW LINK)