Many quality companies are now trading on expensive valuations which, despite the underlying strength of businesses, brings its own set of risks.
It's getting harder to spot companies that have solid business models, operate in markets with barriers to entry and are cash generative, yet the shares trade on reasonable valuations. Some cheap companies are value traps, so finding stocks that aren't too dear and have good upside potential is challenging. This week's round-up includes examples of shares that I think still look reasonably attractive, as well as some shares to avoid.
