Asian markets dropped on Thursday, with the Nikkei down 1.6%, following another sell-off on Wall Street. Major benchmarks in the region are now near bear market territory, marked by a decline of 20% or more. Despite those drops, experts are warning against rushing in to bargain hunt.
"Whether it's (price-to-earnings) or price-to-book value, Asian stocks are actually quite far from the recessionary values," says Kelvin Tay, Chief Investment Strategist for Singapore at UBS Wealth Management.
Tay says that on a price-to-book basis, Asian stocks normally bottom out at 1.3 times, whereas they currently trade at 1.8 times.
"So, is it really dirt cheap? Answer is no," Tay says. "It's just that, at this point in time, no one's going to go into the market to actually bargain hunt, I think it's too early anyway."
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