China has again depressed Chinese equity valuations. Price-to-book ratio has approached the lowest reading since the height of the euro zone debt crisis in October 2011. Historically, such low valuation was typically followed by a mean reverting rally, and an overall 3.4 percent dividend yield.
Source: Bloomberg, U.S. Global Click on the image for larger picture.
A rally is due that takes the Price/Book ratio back to the mean ?
Geir Solem
Elliott Wave Technician
Copyright (C) all rights reserved
Source: Bloomberg, U.S. Global Click on the image for larger picture.
A rally is due that takes the Price/Book ratio back to the mean ?
Geir Solem
Elliott Wave Technician
Copyright (C) all rights reserved
