News

September 4, 2017

Providence view in the Australian Financial Review

There are useful lessons from 30 years of performance of various asset classes, in this article by Sally Patton (Australian Financial Review, 2nd September 2017).

Grant Patterson, Managing Director of Providence is quoted within the article, sharing his views. “There is an argument that higher equity valuations are justified as a result of the much lower discount rate. However, given that bond yields are a function of economic growth and have been manipulated due to unconventional monetary policy, justifying higher valuations based purely on this is dangerous,” he says.

 

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