Posts filed under “Markets”

How Much Do S&P500 P/E Ratios Vary Historically?


Source: Bespoke Investment Group

 

How expensive are stocks?

Its a question that seems to beget many different answers. Too often, the response reflects the responder’s investment posture. If they are long equities, they typically respond by saying “Not very.” If they are short, or in cash or in other risk assets, the answer is the opposite.

For today’s chart, I wanted to look at this question differently, by considering different P/E ratios relative to history. What does looking at P/E ratios over 10, 25 or 85 years do to what is the historical average ? continues here

Category: Index/ETFs, Investing, Markets, Valuation

Is This the End of the Secular Gold Bull?

In the beginning of this year, we looked at some of the trading errors commonly made by gold investors during this cycle. At the time, gold had fallen 38 percent from its 2011 peak. Yesterday, spot gold traded at less than $1,242 before closing slightly higher. Gold is hitting new multiyear lows relative to the…Read More

Category: Cycles, Gold & Precious Metals, Markets, Technical Analysis

Kiron Sarkar’s Weekly Report (5.31.14)

Whilst US Q1 GDP was revised sharply lower to an annualised rate of -1.0%, down from the initial reading of +0.1%, Q2 GDP should rebound strongly to around +3.5%. The inventory contraction in Q1 should reverse in Q2 and the better weather will also help. Furthermore, growth in consumption was revised higher to 3.2%, from…Read More

Category: Markets, Think Tank

Monetary Rules: Theory and Practice

Monetary Rules: Theory and Practice Frameworks for Central Banking in the Next Century Policy Conference Hoover Institution Stanford, CA May 30, 2014 Charles I. Plosser President and Chief Executive Officer Federal Reserve Bank of Philadelphia Highlights President Charles Plosser discusses his views on the benefits of a systematic and rule-like approach to monetary policy. President…Read More

Category: Bailouts, Federal Reserve, Markets

Succinct Summations of Weeks Events for 5.30.14

Succinct Summations week ending May 30th Positives: 1. The S&P 500 made new all-time highs. 2. Case-Shilller 20-city index grew 1.2% in March, higher than expected. 3. Initial jobless claims came in back below 300k, down from 327k last week. 4. Durable goods grew 0.8% vs expectations for a 0.8% decline. 5. Chicago PMI came…Read More

Category: Markets

Asset Class Dashboard

Nice way to show asset class performance from Russell Investments:   click for larger graphic Source: Russell Investments

Category: Asset Allocation, Digital Media, Markets, Research

My Unusual Career Path in Finance

I have been working in finance for two decades. Along with achieving whatever success and (internet) fame comes regular inquiries from the young’uns seeking advice on how to break into the field. On occasion, I have shared whatever small insights I might have with them. Along those lines, Tom Brakke of the blog The Research…Read More

Category: Apprenticed Investor, Markets, Philosophy

Kiron Sarkar’s Weekly report 5.25.14

Chinese manufacturing shows some signs of stabilisation, with the HSBC May manufacturing PMI coming in better than expected, though still in contraction territory. The weaker Yuan has helped, as has the modest government stimulus programme. However, the property sector looks increasingly vulnerable and employment is declining. I continue to believe that the Chinese economy faces…Read More

Category: Markets, Think Tank

Succinct Summations of Week’s Events (5.23.14)

Succinct Summations week ending May 23rd Positives: 1. The S&P 500 made a new all-time closing high. 2. Markit flash PMI came in at 56.2, up from 55.4 in April. 3. FOMC minutes were released, market jumped higher, business as usual. 4. New home sales came in at 433k v 425k expected. 5. HSBC China…Read More

Category: Markets

Ten Year Treasury Note @ 2.5%

Ten Year Treasury Note @ 2.5% May 17, 2014   dddd The 10-year benchmark US Treasury yield is now 2.5%. That’s right – one can loan money to the United States in a riskless transaction, earn 2.5% interest, and be paid back in 10 years. The movement in bonds has been driven by a combination…Read More

Category: Markets