A Look at the Broader Market’s InternalsWe have previously discussed the stock market’s deteriorating internals, and in light of recent market weakness want to take a brief look at the broader market in the form if the NYSE Index (NYA). First it has to be noted that a majority of the stocks in the NYA are already in bearish trends. […]
SummaryMost news on economic growth and productivity is that there is little seen on the upside; faster growth is just not there.
More and more people are finding information that indicates that the stock market may be overvalued.
What might break investors’ optimistic outlook? What “shock” might change the game? The devaluation of the Chinese renminbi? The continued decline in the commodity […]
Legendary investor Howard Marks likes to quote Albert Einstein: “I never think about the future — it comes soon enough.”But as Marks writes in his recent memo to clients of Oaktree Capital Management: “We can’t take that approach as investors, however. We have to think about the future. We just shouldn’t accord too much significance to our opinions.”Yet the pressure […]
So are stock prices too high or aren’t they?One of the most closely watched measures of stock market value is the cyclically adjusted price-earnings (CAPE) ratio. Popularized by Nobel-prize winning economist Robert Shiller, CAPE is calculated by taking the S&P 500 and dividing it by the average of ten years’ worth of earnings. If the ratio is above the […]
Submitted by Michael Snyder via The Economic Collapse blog,The higher financial markets rise, the harder they fall. By any objective measurement, the stock market is currently well into bubble territory. Anyone should be able to see this – all you have to do is look at the charts. Sadly, most of us never seem to learn from history. Most of […]
Going into 2015 the economic outlook held by the U.S. investment establishment could not have been much more positive, and more unified. Pundits saw all the variables aligning to create the best of all investment worlds, a virtual “no-brainer” of optimism. Many believed that the 5.0% annualized growth in 3rd quarter would stay strong in the 4th Quarter and then […]
SummaryThe United States stock market has risen to historic highs over the past couple of years largely thanks to the three rounds of quantitative easing of the Federal Reserve.
The stock market has tended to outgrow both the US economy and corporate profits, leading some to argue that the market might be over-valued.
The stock market could still go up another 10 […]
SummaryWe examine the Shiller CAPE ratio to understand whether the US stock market is overvalued.
Prior articles have suggested the US stock market is overvalued based on the CAPE ratio.
I argue that when you analyze the CAPE ratio relative to the interest rate environment the US stock market is not over valued.
This article is in response to an article recently published […]
Societe GeneraleWall Street’s strategists get paid tons of money to quibble over what stocks might do over the next year.
But most investors have longer-term time horizons to consider.Today, the analysts at Societe Generale update their 10-year outlook for the global stock markets.In brief, they don’t think investors should be anticipating the double-digit annual returns of the recent past.”US equities face […]
moreView todays social media effects on CAPEView the latest stocks trending across Twitter. Click to view dashboardSee who Barclays is hiring next, click here to view […]