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IPFS News Link • Stock Market

A Long Way Down To Value Still

• https://www.zerohedge.com, Tyler Durden

Stocks still need to deal with its valuation problem as well as discounting the long-term financial and economic impact of the Coronavirus shock

Even with the 25 percent sell-off since the February 19th high, stock market capitalization-to-GDP remains extremely elevated, still higher than its pre-GFC high and at the 85th valuation percentile

Our analysis illustrates that stocks still have 40-56 percent of downside to reach the valuation levels where the past two major bear market's bottomed

Time, rather than price, could bring valuations back into line with historical valuation levels as stocks settle in for a protracted bear market

A loss of confidence in the dollar as the world's reserve currency could spark inflation and boost stocks as an inflation hedge.


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