Market down: Brexit panic? No, just an over-valued market.
W&D is always amazed at the reasons financial journalists give for share-market changes. It's never as bad as 'more buyers than sellers". But not too far away.
This week's howler was "market falls on Brexit fears".
Err, well, no. The market fell because it was very over-valued. As W&D pointed out last week, overall the market was trading on a p/E of over 17, with the ASX ex-financials and ex-resources trading at over 20.
The fall could have been attributed to almost anything that was remotely fiscally related. A new poll showing that the Brexiters (i.e. those wishing Britain to leave the EU) now number 45.5% of voters, compared to 45.9% of Stayers (9.7% undecided) seemed to have been the button that was pushed.
Brexit has pushed Grexit off-stage
Had the market been valued on a P/E of, say, 14, W&D doubts that the Brexit poll would have caused such a reaction.
See elsewhere for W&D views on Brexit.