More pain to come for equity investors – at least in the short term. While the UK’s FTSE100 headline index bumbled along in August, volatility returned to the S&P500 in the US. The benchmark index between mid-June and mid-August managed to recover 50% of the stockmarket fall which began on January 5th and sent stocks tumbling 22% on the S&P500 and 28% on the tech-heavy Nasdaq. The fall in stock values brought the average price-earnings multiple down from 22 to the long term average of 15.
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