Posts filed under “Valuation”
Click to enlarge
Source: Daring Fireball
Fascinating chart via John Gruber looking at the relative change in market capitalizations of four of the largest publicly trading tech companies.
The ongoing strength of Amazon is nearly amazing as the continued weakness in Microsoft.
All the while, Google keeps chugging along . . .
To answer that question, look at the chart above, courtesy of Société Générale’s Albert Edwards, who asks the question “Are equities really unambiguously cheap?“. (Cyclical Earnings charts after the jump).
Shiller’s CAPE chart shows that while US equities are fairly reasonably priced, they are not, to use Edwards term, “unambiguously cheap.” But for about a week in March of 2009, they were, but if you blinked you may have missed it.
Europe, on the other hand, appears to be appreciably cheaper than US equities. (Funny how recessions tend to do that). We have about a 16% European weighting, primarily through ETFs like GAL and DVYE.
Regardless, contrarians may wish to take note of this from a valuation perspective.
Are equities really unambiguously cheap?
Albert Edwards, Global Strategy Weekly
Société Générale, February 14, 2013
Why Are Corporations Holding So Much Cash? By Juan M. Sánchez and Emircan Yurdagul January 2013 U.S. corporations are holding record-high amounts of cash. Understanding this phenomenon, many argue, may help us tease out the reasons for the slow recovery from the Great Recession. A close look at the balance sheets of…Read More
Why cheap Apple shares can’t gain any traction click for larger graphic Source: Barron’s The chart above shows the 5 largest market cap firms as a percentage of the S&P500 index. Barron’s points out that when companies hit 5% of the S&P500, it often acts as a cap on further valuation growth. The…Read More
Marketwatch has a list of the 10 most hated companies in America — but I get the sense its based on rather suspect bases (full list below): 10 Most Hated Companies J.C. Penney Dish Network T-Mobile USA Facebook Citigroup Research In Motion American Airlines Nokia Sears Holding Corp. Hewlett-Packard -Marketwatch J.C. Penney, really? Does anyone…Read More
“The banks should give a full, fair, and accurate account of their financial positions and they are failing that test.” -Kevin Warsh, former Federal Reserve Board member “After serving on the [FASB] board, I no longer trust bank accounting.” -Don Young, Financial Accounting Standards Board “Do I trust Bank Accounting? Absolutely not.” -Ed Trott, Financial Accounting…Read More