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  5. MISC: Interview of 3 economists this month wich similar conclusions [Miscellaneous]
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Q: Interview of 3 economists this month wich similar conclusions :"markets are extremely ( and historicaly) overvalued" , all anticipate some correction in January and "roller-coaster" after..No mention of sectors though ...Do you agree with this overvaluation thesis, and if this were the case ,what sectors would be less at risk ?
Asked by Jean-Yves on January 01, 2025
5i Research Answer:

We might push back on the overvaluation thesis a bit. Markets aren't 'cheap' (moreso large-caps) and certain areas are frothier than others but things also look pretty good right now so some premium to valuations is likely justified. We could agree with the idea of a January pullback, but it is becoming such a consensus view lately and given a bit of a drift lower recently into year-end here, we think a January dip thesis is looking less likely/obvious. Regardless of whether a correction comes in January, we would view it as a healthy, normal course type of sell off opposed to anything an investor should be making material adjustments in their portfolio for.  'Safer' sectors for those concerned are utilties, consumer staples and healthcare.