What risk assets are not near record valuations, aside from assets in a few sectors such as energy and retail? Investing when multiple expansion occurs over a holding period is a great thing, but multiples cannot expand forever; they also can contract. Jeff Davis, managing director of Mercer Capital’s Financial Institutions Group, explains.
To read the full article in Mercer Capital’s Financial Reporting Blog, click: Gravity Matters, Especially for Financial Investors.
This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.
