In fact, biotech stocks have been so strong that “you could see these stocks off another 10 percent from here, and still be in an uptrend,” Johnson said. “We’d be buying these names on the pullback.”The fundamentals also remain supportive of biotech, says David Seaburg, head of equity sales trading with Cowen & Co.”From a valuation perspective, this is not […]
SummaryThere are many types of risk associated with investing.
Some risks are obvious and straightforward while other risks are far less obvious.
One of the most obvious risks is valuation risk.
As we enter 2015 with a blended P/E ratio of 17, the S&P 500’s valuation sits at the upper end of its historical normal valuation range since 2001.
Current S&P 500 valuation suggests […]
The stock market is at an all-time high.And gains have been bolstered by earnings, which in turn have benefited from historically high corporate profit margins.These expanding margins have allowed flat to modest revenue growth translate to relatively strong earnings growth in a phenomenon formally known as operating leverage.The bears believe these margins are doomed to fall back to a […]
