(Harvest) Last week’s British vote to exit the European Union (EU) has spurred a flight to perceived safety and left many investors asking where to find opportunities amid indiscriminate selling of global risk assets. This week’s chart helps explains where to potentially find attractive value in a post-Brexit world.
Prior to the Brexit vote, there was a wide range of valuations but few cheap assets globally, as shown in the chart below. With most asset valuations still looking fair to expensive, it’s important to focus on relative valuations.
