Rear Vision Mirror No Longer Reasonable Guide For Investors

A couple of decades ago, a balance sheet might have provided useful insight into a company’s value. Today the listed value of most companies far exceeds of the value of the tangible assets reported in most balance sheets.

Much more of the value is intangible and investors are looking for greater insight into off-balance sheet value. According to new research by Lloyds and KPMG, corporate brand and reputation – intangibles – account for 25.3 per cent of the market capitalisation of the world’s leading equity market indices.

In July 2020, Ocean Tomo updated its intangible asset market value study to investigate the economic effects of COVID-19 and found it has accelerated the trend of increasing intangible asset market value share, with intangible assets now commanding over 90 per cent of the S&P500 market value. Read more…..


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Mohamed El-Erian, Queens’ College University of Cambridge President and stock market expert, gives his thoughts on the latest macro trends.

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