US market slump: an opportunity for Asia?

Volatility specialist argues that although the bear market in the US is far from over, Asian markets may benefit from the current environment.

It is well known that markets have an outstanding record of reverting to their long-term averages despite occasional irrational behavior from time to time. One of the most popular measures of market value is the PE ratio. The price to earnings ratio of the SP500 currently stands at 15.3 or 31.6, depending on the use of trailing or forecast earnings. This represents a meager return of between 3.2% and 6.5% compared to a risk-free rate of 4.6% for...

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