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Opinion

Marxist markets

Marxist markets
September 14, 2011
Marxist markets

This seems a dramatic statement, but it follows from the maths of low valuations.

As I write, the price-earnings ratio on the All-share index is just 8.86. This is almost half its average for the last 15 years, of 17.5. However, the dividend yield is a less exceptional 3.62 per cent – only half a percentage point above its average.

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