Sam Ro
Jun. 1, 2015, 11:38 AM
739
There’s nothing more important to stock prices than earnings and expectations for earnings growth. Earnings, or net income, is literally the bottom line.While that’s a principle that plays out in the market in the long-run, it unfortunately doesn’t in the long run.Take this chart from FactSet’s John Butters. It shows the trajectory of the S&P […]
Doug Short, Advisor PerspectivesHere’s some encouraging news for stock-market bears …Margin debt (red in the chart above) hit a new high in April.Even after adjusting for inflation, margin debt is now higher than it was at the peak of the great bull market in 2000 and the echo bull market in 2007.What is “margin debt”?It’s the amount of money stock […]
PBS NewshourRobert Shiller.There isn’t a full-on stock market bubble breaking out, but it sort of looks like it. In an interview with Goldman Sachs’ Allison Nathan this weekend, Yale professor and Nobel Laureate Robert Shiller was asked if the stock market is currently in a bubble. Shiller wouldn’t go so far as to say we’re definitely in a bubble, but said there are […]
In his “Investment Adventures in Emerging Markets” blog earlier this year, veteran investor Mark Mobius noted, “According to the Chinese calendar, 2015 is the Year of the Goat (or sheep), creatures that are typically peaceful in nature but can also be stubborn, while exhibiting herd-like behavior.”That year official began on February 19. And so far, the Chinese zodiac has completely […]
REUTERS/Brendan McDermidByron Wien.Stocks have catapulted through recovery.Among the things that have driven the expansion, a key factor has been the role of the Federal Reserve.In market commentary Wednesday, Blackstone’s Byron Wien pegs a number on this: $3 trillion.Even though we’ve seen company earnings more than double between 2009 and 2014, there has been concern that the market rally has largely […]
REUTERS/StringerPupils creating the Chinese flag on a canvas by using their hands dipped in red paint at a primary school in Jinan, Shandong province, in 2009.Foreign cash is streaming into China’s stocks even as the market shows signs of extreme volatility — while analysts pile on to warn that Shanghai equities are in a bubble.Here’s the Financial Times on Friday […]
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The Shanghai Composite stock index was slammed on Thursday, dropping by 6.5%.Over the last year, the Shanghai exchange has grown to be the third largest in the world.Here are the ten largest stock exchanges in the world by total market capitalization, as of April 2015, according to the World Federation of Exchanges’ monthly report. With a total end of […]
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Market complacency has re-emerged, warns Deutsche Bank’s David Bianco.His preferred measure of this is the PE / VIX ratio. (PE is short for price-earnings, a measure of stock market value. The VIX is the CBOE volatility index, a rough measure of “fear” in the stock market.)From Bianco’s note: “Our PE/VIX market emotion indicator climbed to 1.3 on S&P trailing […]
Sam Ro
May 19, 2015, 8:25 AM
3,301
REUTERS/Brendan McDermidTobias Levkovich, CitiSee AlsoStocks are expensive, but they’re still attractiveMORGAN STANLEY: ‘It’s too early to call the top’Top Wall Street strategist gets hate mail and fires back after discovering his critic is actually ‘bad at their job’The stock market is at an all-time high, and milestones like this make investors hungry for guidance.On Friday, […]
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There’s been a growing disconnect in stocks. Over the last few weeks, we’ve highlighted versions of the following chart from Bank of America Merril Lynch, which shows that US equity funds have seen massive outflows this year while stocks continue to climb to record highs. The big questions surrounding this disconnect relates to where the outflowing cash is being invested and who’s propping up […]
