Capital Markets: Observations and Insights

Focusing on Fundamentals ​ Reframing Risk

RISK

• When it comes to areas of innovation, fundamentals prove more important than valuation metrics

Innovation Changes the Rules of Valuation—Higher P/Es Yield Higher Returns?

Source: FactSet for the three-year period ended 6/30/19, based on GICS industries of the S&P 1500 Index.

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