JCI's valuation is premium to regional market at the moment. The turbulence of US market did not pushed JCI low enough compared to the fall in the regional market. So, does it mean JCI will drop from now? Yes, but with tolerated percent.
The logic of global market move in positive correlation is correct, but not always the high valuation market will go down to adjust to the low valuation market, but the low can also go up to adjust the high one.
I believe JCI fragile from US thunder and regional market is over-sold at the moment. Even few of them already traded at the lowest valuation since 2008 therefore, I believe they will rebound from now.
Now, JCI is traded at 15x earnings. Historically, at period of positive real interest rate cycle like today, JCI traded lowest to just 13x or equal to 3200.
The fed will continue give doping to their market, QE will never end. They just can't accept the reality. What does it mean? Just imagine how a doping football player stop doping.
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