According to JPMorgan, the fall in both developed and emerging equity markets of close to 20% since last October already closely matches the average fall of 21% in the previous 10 recessions. To some extent the fall has been so great that equities are already looking cheap. Historically, the bank points out, P/E ratios have tended to peak at a 10% premium to recent trading ranges at the onset of slowing growth. Before the current market fall, however, equity P/E ratios actually peaked at a 20% discount to recent trading ranges.
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