My early morning reads to start the week:

• Jobs Data Reveal Unexpected Good News (WSJ) but see 17 Scary Numbers From the First Quarter (Morningstar)
• Don’t Trust The Wise Men Of Finance (Forbes)
• Foreclosures give rise to a new industry (Washington Post) see also As Foreclosure Problems Persist, Fed Seeks More Fines (NYT)
• Want an Active Investment Manager? Here’s What to Look For (NYT)
• Why Are the Fed and SEC Keeping Wall Street’s Secrets? (Bloomberg) see also What Senate’s Unusual FDIC Moves Mean for Future of the Agency (American Banker)
Lawrence Solomon: A world awash in oil (Financial Post)
• A Republican meteorologist looks at climate change (MPR)
• The Mastery of Non-Mastery (LA Review Of Books)
The Cliff Theory: How Handset Makers Die, why Mobile Phone  Companies Collapse so Rapidly (Siemens, Motorola, Palm, Nokia, Blackberry and Windows Mobile) (Communities Dominate Blogs)
• Man whose WMD lies led to 100,000 deaths confesses all (Independent)

What are you reading?

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S&P500 P/E Ratio

Category: Financial Press

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

8 Responses to “10 Monday AM Reads”

  1. Arequipa01 says:

    From the annals of ‘I have a 1.3 million Mercedes SLR McLaren so my right to do what I want supersedes your right to continue living’:

    http://www.nytimes.com/2012/04/01/world/americas/fatal-car-crash-in-brazil-spotlights-class-division.html?_r=2&ref=world

    Eike Batista’s 20 yr-old kills young man on bicycle.

  2. 873450 says:

    Pensions Find Riskier Funds Fail to Pay Off

    http://www.nytimes.com/2012/04/02/business/pension-funds-making-alternative-bets-struggle-to-keep-up.html?ref=business

    Best Quote:
    The Austin Police Retirement System … fund’s choice of investments — real estate in places like Las Vegas and Florida — did not provide much refuge when that bubble burst. … “Vegas was in a boom time,” Mr. Jordan, the fund’s chief executive, said. “Snowbirds were moving there from the Midwest. People were saying at one time it was going to get bigger than New York. Then the bust happened, and we owned some single-family developments, subdivisions, and there’s no one living in those.”

    That is what happens when a human brain is left cooking out in the desert too long. He should be fired just for saying it.

  3. MayorQuimby says:

    Yield is 2.3% on DIA. Terrible price to pay for so much risk. Sorry – but I buy at a good price or not at all. I don’t chase Tickle-Me Elmo frenzies on Black Friday!

  4. VennData says:

    Justices Approve Strip-Searches for Any Offense

    http://mobile.nytimes.com/2012/04/03/us/justices-approve-strip-searches-for-any-offense.xml

    Wait’ll that big gay cops busts you for jaywalkng you white angry GOP voter. Drop ,em!

  5. Jojo says:

    World Repository of Human Genetics Now Hosted by Amazon
    02 April 2012

    The U.S. National Institutes of Health announced Friday (March 30) that it’ll be hosting data from its 1,000 Genomes Project for free on Amazon’s cloud service. The 1,000 Genomes Project is the world’s largest database of human genetics. It was created to act as a “reference population,” including people of different ethnicities around the world, and it captures all the major ways in which humankind varies genetically. Now that they are hosted on Amazon’s servers, the data in 1000 Genomes will be easier and cheaper for scientists to obtain and analyze.

    “[The Amazon hosting] makes the data available to researchers in a way that is more useful and that avoids the researcher having to spend lots of money on storing the data themselves, on their local systems,” Eric Schadt, director of the genomics institute at the Mount Sinai School of Medicine in New York, wrote to InnovationNewsDaily in an email. “This is definitely cool.”

    http://www.innovationnewsdaily.com/1008-world-repository-human-genetics-hosted-amazon.html

  6. Greg0658 says:

    JoJo .. save me the research .. which people are 1/2 Martian .. or do we not know just yet – for a 1/2 humanoid 1/2 martianoid must 1st physically touch the Golden Plates of LDS for the metamorphoses / and they got the word to stay untested :-)

  7. RothcoUDipthtick says:

    With reference to the chart for the S&P P/E …not seen since 1990 etc…

    The difficulty I have with P/E is that it’s not that simple….in 2009 for example during the financial crisis, the P/E went to 147 at the time when stocks were cheapest. Price anticipated earnings growth due to QE etc. – so had you used that metric in isolation for valuation you would have bailed in April ’09 – clearly the wrong thing to do.

    Interestingly, if you use earnings yield (E/P) the picture tells a slightly different story now…its currently telling you that the S&P is fair value…not cheap.

    Given the fact that there are several different ways to value equities, each with their own nuances – it seems to me sensible to use an equally weighted basket approach – that incorporates div yield, earnings growth, asset valuation, debt, free cash flow etc.

    You can then look at the historical averages of each of these and set out std deviations away from mean – as well as the whole basket.

    You can also tweak the basket for smaller companies or EM’s to add more weight to growth etc…

    You can also apply this to relative market valuation on a global basis…

    For reference, my take on it is that overall it is saying that large caps looks ok value, mid cap looks a bit expensive and small looks reasonable….