Time to send some money to cheaper shores.
In a note, JBWere has advised clients to reduce their exposure to Australian equities.
“Traditionally Australian investors have a natural bias towards Australian listed companies, but with such glaring discrepancies, reducing exposure to Australian equities and increasing international equities exposure appears appropriate,” it said.
Companies here, according to JBWere, look expensive compared to ones overseas.
“While we note that differences in earnings growth and market position may contribute towards the relative P/E, we cannot deny that Australian equities continue to look expensive in comparison with global peers.”