Global markets still a gold mine (The Aust 08/12/18)

Global equity markets recently experienced their second technical correction for 2018.

The Australian S&P/ASX 200 peaked on August 29 at 6352 but closed down 10.8 per cent on ­November 30 well down from that peak. This week it dropped even lower to finish under 5700.

The US S&P 500 peaked nearly a month later on September 20 at 2931 but also closed down at the end of November, 5.82 per cent off that peak and has gone lower since.

I am biasing towards equities especially after the recent sell off. This was and still is the “least overvalued” asset class – and remains cheap relative to mainstream fixed income.