1.   At these valuation levels, such a surprise could be very painful.

2.   On the flip side, the sustainability of earnings growth is suspect and valuation levels of the market may suggest stocks are too expensive.

3.   Some of the stocks held by the fund are trading at high valuation levels and that could hurt the fund if the market falls, he said.

4.   Stocks today are selling at historically low valuation levels.

5.   Earnings had come down significantly so it was difficult to determine valuation levels, Ms Keen said.