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When a company announces its quarterly financial results, it’ll sometimes offer a two sets of earnings.The first is GAAP earnings, which are based on generally accepted accounting principles. This is an industry standard that requires every industry and company to account for and report items in a uniform way.But some companies and industries believe GAAP earnings aren’t always representative […]
I recently took a look at changes in the number of shares outstanding of the SPY ETF as a sentiment measure. When traders are bullish, shares are created in the ETF; when they are bearish, shares are redeemed. This is a useful sentiment gauge, because it reflects what traders are actually doing in the market, not just their stated sentiment.What […]
REUTERS/Yuya Shino”2,200? That’s it?”See AlsoCiti Raises Its 2014 Target And Unveils Its 2015 Target For The S&P 500This Definitive Chart Destroys The Argument That We’re Reliving The Bubble Of The Late 1990sThe S&P Closed At A Record 2,039 On Friday — Here’s What Wall Street Predicted In JanuaryCiti’s Tobias Levkovich and his equity strategy were recently in Asia for client […]
One of the psychological curiosities of the stock market is that we tend to see euphoria when shares are their most overvalued and despondency when they are trading at greatest value. It’s for that reason that sentiment gauges can be useful in tracking market cycles. One of my favorite measures is the ratio of put options traded to call options […]
Do Stock Market Valuations Matter?December 9, 2013
Ron DeLegge, EditorEvery single day we are barraged with an array of conflicting data about the stock market. Stocks are expensive, says Guru A. In the same conversation, Guru B proclaims, Stocks are cheap. With the S&P 500 (NYSEARCA:SPY) hitting all-time highs, do stock valuations matter? Using reported price-to-earnings ratios (P/E) for the trailing […]
