Long story short… yes, there appears to be a relationship between economic growth and stock market performance within the U.S. (and developed world), but that relationship holds only over longer periods of time and does not hold for all countries (less developed countries often “divert” growth to the political elite). Also, for those interested in the relationship between long-term economic […]
Long story short… yes, there appears to be a relationship between economic growth and stock market performance within the U.S. (and developed world), but that relationship holds only over longer periods of time and does not hold for all countries (less developed countries often “divert” growth to the political elite). Also, for those interested in the relationship between long-term economic […]
This post is an update to various past posts concerning the stock market bubble, most recently that of November 21, 2013 titled “Is The Stock Market Experiencing A Bubble?”Many people don’t believe that we are currently experiencing a stock market bubble because their primary reference regarding stock market bubbles is that of the mid- to late-1990s, in which there was […]
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 […]
By David L. Allison, CFA, CIPMHere’s a sure-fire way to get gouged: Walk onto a car lot, ask a salesperson to point out the vehicle with the smoothest ride, then purchase that vehicle regardless of price.It sounds reckless, but this is not far from the logic individual investors are using when shopping for the smoothest ride in the stock market.You […]
There are three key sectors where investors should be overweight so they can best outsmart the market, according to Saxo’s Peter Garnry; consumer discretionary as the global economy continues to open up, tech stocks because of their high growth rates and healthcare, specifically the biotech industry.Speaking about tech stocks, Peter has his eye on three companies:1. […]
Verint Systems, Inc. (VRNT), the software applications provider, is up 39% year-to-date. The share price formed a base above $25 during 2011 and 2012 and is now heading towards the $50 level. Verint is in the Enterprise Intelligence and Communications Intelligence business, Big Data.VRNT data by YChartsUnlike its peer, Splunk Inc (SPLK), Verint is priced reasonably. I estimate that it […]
Here is a new update of a popular market valuation method using the most recent Standard & Poor’s “as reported” earnings and earnings estimates and the index monthly averages of daily closes for the past month, which is 1783.54. The ratios in parentheses use the monthly close of 1805.81. For the earnings, see the table below created from Standard & […]
Stock Market SPX Topping Valuations
Stock-Markets / Stocks Bear MarketNov 15, 2013 – 05:19 PM GMTBy: Zeal_LLC
2013’s incredible stock-market melt-up persisted this week, with the flagship American stock indexes surging to fresh record highs. The euphoric bulls continue to claim today’s lofty stock prices are justified by reasonable valuations. But nothing […]
MPI/Getty ImagesThe stock market continues to set new highs, which is exciting and fun for those of us who own stocks.
I own stocks, so I’m certainly enjoying it.I hope stocks continue to charge higher, but I can’t find much data to suggest that they will. I only have a vague hope that the Fed will continue to pump air […]
