Posts filed under “Valuation”

Do You See the Positives or Negatives?

The Standard & Poor’s 500 Index hit an all-time high yesterday, closing at 1,897.45. The Dow Jones Industrial Average also hit a record, ending at 16,715.44. This should be tempered by noting that the Dow is up less than 1 percent so far this year, while the S&P 500 has gained about 2.7 percent. One big down day can erase all gains for the year.

The small-cap Russell 2000 Index has been playing the spoiler, failing to reach new highs. Perhaps this is less surprising, after last years’ blistering 38 percent gain for the Russell, and 43 percent run-up for its growth index. No one expects new records anytime soon from the Nasdaq Composite Index. It is up about fourfold from its 2002 low, but still is almost 20 percent below its peak more than 14 years ago.

Each new set of highs seems to be greeted with derision and skepticism. The evidence shows that new highs are bullish, but that seems not to matter very much to the skeptics. The U.S. economy is the cleanest shirt in the dirty hamper. Year-over-year increases in corporate revenues and better-than-expected earnings should also give investors a reasonable basis for anticipating equity gains.

This morning, I want to take a quick look at what is bullish and bearish for stock markets.   continues here

 

Category: Data Analysis, Earnings, Psychology, Sentiment, Valuation

Are Valuations Really Too High?

Are Valuations Really Too High? By John Mauldin Thoughts from the FrontlineMay 10, 2014 Take It to the Limit In a Perfect World The Future of Earnings How Did We Get Here? It’s Not Only Stock Market Valuations San Diego, Italy, and Nantucket The older I get and the more I research and study, the…Read More

Category: Think Tank, Valuation

Alibaba: The _____ of China

All the Western companies you’d have to combine to get something like Alibaba:   click for larger graphic Source: Quartz   Alibaba filed for its IPO last night, and as you can see below, it is more than merely the “Amazon of China.” If you want to know why the dollars involved are so large, …Read More

Category: Digital Media, Economy, IPOs, Valuation, Web/Tech

Spec-Tech Crash Is a Good Thing

Today, I hope to explain how the crash of the speculative tech names is a positive. Last month, we noted that “High-Flying Tech Stocks Were Coming Back to Earth.” Some of the companies we reviewed then included Twitter Inc., LinkedIn Corp., Netflix Inc., Tesla Motors Inc., Priceline Group Inc., Google Inc. and Facebook Inc. Since…Read More

Category: Investing, Psychology, Technology, Valuation

If Stocks Go Up, Must They Always Come Down?

What’s gone up won’t always come down Barry Ritholtz Washington Post, April 20 2014     U.S. equity markets made substantial gains last year. The Standard & Poor’s 500-stock index, the traditional benchmark for equities, was up 29.6 percent. Add in dividends, and it’s well over 30 percent. Technology and small-cap stocks did even better, with…Read More

Category: Apprenticed Investor, Investing, Technical Analysis, Valuation

Apple In Numbers

How many iPads are sold every minute? Why did The Beatles sue Apple? How much money has Apple got stashed abroad?   Explore more visuals like this one on the web’s largest information design community – Visually.  

Category: Technology, Valuation

It’s a Tech Bubble! Unless You Care About Earnings and Valuations

Earlier this week, Greenlight Capital hedge fund manager David Einhorn reignited the bubble debate that we have spilled so many pixels dissecting. The shorter of Lehman Brothers and the New York Mets fan said in a quarterly letter to clients “we are witnessing our second tech bubble in 15 years.” The Bubble Chatter is nothing…Read More

Category: Hedge Funds, Psychology, Short Selling, Valuation

Asness: Stocks & Bonds Are Expensive

Cliff Asness, founder & CIO at AQR Capital Management, discusses his investment strategy, how geopolitical risks influence markets, his biggest market concern and why he believes we are not in a tech bubble on Bloomberg Television’s “Market Makers.”

Long-Term Market Outlook Concerns Me Most: Asness

Bloomberg April 15

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Bloomberg’s Michael McKee and Cliff Asness, founder & CIO at AQR Capital Management, dig deeper into consumer prices for March and weigh the expense of bonds and equities on Bloomberg Television’s “Market Makers.”

Stocks and Bonds Both Equally Expensive: Asness

Bloomberg April 15

Category: Investing, Valuation, Video

How Pricey Are Equities?

One of the elements of modern punditry that continually surprises me is the insistence that stocks are grossly overvalued. As I have written repeatedly, stocks are more or less fully valued. However, since we don’t know what next year’s earnings are going to be, stocks can get cheap or expensive pretty quickly. It depends on…Read More

Category: Investing, Valuation

Are Stocks Pricey or Cheap?

How to know whether stocks are cheap or pricey Barry Ritholtz Washington PostTerms March 23, 2014     Last week, the Fed shared some widely expected news: It will taper more — keeping up a policy of slowly reducing its bond-buying program with the goal to wind it down by year’s end. It has telegraphed…Read More

Category: Apprenticed Investor, Investing, Valuation