In a presentation this weeks by Schroders, the chart below was provided - showing that on a Price/Earnings basis, Australian industrial stocks are at their most expensive valuations seen over the last 30 years. Why is this important? When investing, if you buy investments that are very expensive by long-term historical measures, you should normally expect poor or bad medium-to-long-term investment outcomes.
I'm busy working on my blog posts. Watch this space!