Posts filed under “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 new. Regular readers will recall this has been a n issue I enjoy exploring.  Indeed, it has been accompanying the current bull market since it lifted off its lows. Back in 2011, I even created a checklist of “How to Spot a Bubble in Real Time.” And more recently, in November of last year, I noted we seemingly have a “Bubble in Bubbles.”

There certainly are many anecdotal indications of froth. Secondary issues have increased. Mark Zuckerberg has made some questionable acquisitions at what looks like absurd valuations (but last I checked, Zuck is not the determiner of bubbles). We see that Mom and Pop are slowly coming back into the market. Both TD Ameritrade and E*Trade Report saw a 30% jump in activity in the first quarter; Schwab, which tends to me bore investor than trader focused, saw volume rise 13%.

Continues here

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

Shiller: On Bubbles & Busts

In an interview with contributor David Wessel, Yale economist Robert Shiller describes his thoughts on what actually drives markets—and recalls his encounter with Alan Greenspan just before the Fed chairman’s “irrational exuberance” speech.

Category: Psychology, Valuation, Video

Are Stocks Cheap or Pricey?

>   My Sunday Washington Post Business Section column is out. This morning, we look at whether stocks are cheap or expensive. The print version had the full headline Are Stocks Cheap or Not? How to Tell. The conclusion is surprisngly middle of the road. Here’s an excerpt from the column: “To know whether stocks…Read More

Category: Apprenticed Investor, Investing, Valuation

When Markets Are Wrong

  My favorite chart on the website this week (so far) comes from Matthew Klein’s column: Is Yahoo’s Business Worth Less Than Nothing? And it’s filled with informative details. Yahoo! Inc.’s total value is represented by the first bar. If you subtract the value of Alibaba Group Holding Ltd. and Yahoo! Japan Corp. you are…Read More

Category: IPOs, Valuation

Buffett’s Favorite Indicator Is Worthless as a Buy/Sell Signal

Source: The Chart Store     Today I am going to make a somewhat nuanced argument about the dangers of indicators and metrics for valuing stocks. Let’s use arguably the greatest investor of all time, Warren Buffett, and what he describes as, “probably the best single measure of where valuations stand at any given moment.”…Read More

Category: Really, really bad calls, Technical Analysis, Valuation

WhatsApp

He’s creatively bankrupt. Recent studies show that few post and no one clicks through on likes, what’s a poor boy to do? Buy something with all that Wall Street money to deflect criticism as those prognosticating and investing miss the point. Steve Jobs is a hero not because he started the computer revolution, but because…Read More

Category: M&A, Technology, Valuation

If Company Market Caps = Countries’ Listed Firms

This map matches the value of an entire countries’ listed firms (in total) versus the cap of a single company. Source: Economist

Category: Digital Media, Valuation