It’s conceivable that equities trade at slightly higher multiples over the foreseeable future in large part because the comparison to fixed income isn’t the same as it was over the past 30 years; while bond yields have ticked up modestly, they are still exceptionally low by historical standards In such an environment, investors may continue to reward companies that have growing earnings stream, regardless of sector, and those companies may very well trade at higher multiples than they have in the past. We believe that possibility makes it somewhat more challenging—and important—to identify which sectors and securities truly present the opportunity for growth at a reasonable price. Download full PDF