Posts filed under “Valuation”
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
Nice take from the Global Quantitative Research team at Societe Generale: Source: Societe Generale Quant Quickie SocGen goes on to add: • In a world where more and more assets are being pushed up to uncomfortably high valuation multiples, finding assets cheap enough to buy is a serious challenge for investors who need to…Read More
This is a preview of an upcoming column. “The four most dangerous words in investing are: ‘this time it’s different.’ ” -Sir John Templeton What do these words actually mean to investors today? As of late, more than a few pundits have been misinterpreting their meaning. With a wave of a hand, they…Read More
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…Read More
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
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
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
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
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