Delivering Global Macro Investment Insights

DeSaque Macro Research

DeSaque Macro Research Limited was formed by Said DeSaque in April 2012 with the view to delivering global macro investment insights aimed at providing new ideas to clients.

Said DeSaque has over 26 years of experience working as a professional economist in financial services. Prior to establishing DeSaque Macro Research, Said held positions as Senior Economist at Robert W Baird and William Blair. He began his career as a graduate at PaineWebber in 1986, where he eventually became Head of the London Economics Department.

Said takes a very keen interest in international relations, along with their implications for economic development. His research interests include the economic transformation of China and its implications for global capital markets, particularly in the United States. He is a member of Chatham House in London.

The US economy and capital markets have historically been Said’s main focus of attention. He frequently presents his views to institutional investors in diverse geographic locations. In recent years, Said has also been carefully monitoring economic developments in Asia, particularly China and Japan.

Global Economist, DeSaque Macro Research

Said Desaque

Global Economist

Cross Asset Strategy

<ul>
<li>Rising valuations during the COVID-19 pandemic reinforce the view of an inherent capacity to overshoot to the upside, but it is too early to conclude that subsequent compression is over. </li>
<li>Compression in US equity prices in 2022 lowered secular valuation indicators, but they are not indicating the emergence of the deep long-term value that occurred in the 1970s and 1980s.</li>
<li>The prolonged period of P/E multiple compression in the aftermath of the internet bubble bursting meant that US equity returns became earnings-driven, an outcome that is likely to repeat. </li>
</ul>


Rising valuations during the COVID-19 pandemic reinforce the view of an inherent capacity to overshoot to the upside, but it is too early to conclude that subsequent compression is over. 
Compression in US equity prices in 2022 lowered secular valuation indicators, but they are not indicating the emergence of the deep long-term value that occurred in the 1970s and 1980s.
The prolonged period of P/E multiple compression in the aftermath of the internet bubble bursting meant that US equity returns became earnings-driven, an outcome that is likely to repeat. 


US Equity Valuations: Less Expensive, but Not Indicating the Emergence of Deep Value