Here are the observations from Dinakar Singh, the activist investor engaged in a high-profile fight with Sandridge Energy (SD, Financial):
- Investors were positioned as though the world was about to end. It didn't, and therefore the stock market has had a nice rally.
- He sees a pretty tough environment going forward for S&P companies to try and grow earnings rapidly.
- For the first time in a long time he sees valuations in most regions globally as being similar.
- The S&P 500 is trading at roughly a 12 P/E multiple which is 3 points below the historical average. Three sectors make up that undervaluation: healthcare, technology and energy, all of which likely deserve the discounted valuation.
- Investors were positioned as though the world was about to end. It didn't, and therefore the stock market has had a nice rally.
- He sees a pretty tough environment going forward for S&P companies to try and grow earnings rapidly.
- For the first time in a long time he sees valuations in most regions globally as being similar.
- The S&P 500 is trading at roughly a 12 P/E multiple which is 3 points below the historical average. Three sectors make up that undervaluation: healthcare, technology and energy, all of which likely deserve the discounted valuation.
