Posts filed under “Valuation”

Beyond BRICs

Click to enlarge
Chart

 

Shorter Dave Wilson: Emerging markets have stunk the joint up.

The longer version looks at some of the new ETFs that seek to shore up performance of emerging-market stocks by dropping the BRIC part of EM:

-The four-country BRIC indicator has slipped 15 percent, with Brazilian stocks leading the decline.

-Beyond BRICs index compiled by Indxx LLC has fallen 13 percent for the year. It tracks the decline in the MSCI Emerging Markets Index, (BRICs + 17 other countries).

-Both indexes have dropped about as much as the MSCI BRI Index, also shown in the chart. The four-country indicator has slipped 15 percent, with Brazilian stocks leading the decline.

Note that State Street filed to start an exchange-traded fund known as the SPDR MSCI Beyond BRIC ETF — it would be emerging markets excluding Brazil, Russia, India and China.

 

 

Source:
Emerging-Stock Drop Thwarts Going Beyond BRICs
David Wilson
Bloomberg,August 30, 2013

 

Category: Investing, Markets, Valuation

A Closer Look at Jeremy Grantham’s Expected Returns

Chart Attack,” FusionIQ’s Barry Ritholtz and Bloomberg’s Adam Johnson look at Jeremy Grantham’s 7-year expected returns. They speak on Bloomberg Television’s “Street Smart.”


Source: Bloomberg Aug. 21 2013

Category: Media, Valuation, Video

How Future Growth Impacts Current Equity Valuations

More fun with price-to-earnings ratios: Earlier this month, we looked at the question of whether Stocks were Cheap or Expensive. That was a follow up to our glance at how much Earnings and Equities had rallied off the 2009 lows. The problem is the many ways we can define earnings-per-share. Do we use analysts’ forward…Read More

Category: Earnings, Valuation

Stocks: Cheap or Expensive?

Click to enlarge Source: BofA Merrill Lynch US Equity & US Quant Strategy     Merrill Lynch’s quant team looked at 15 metrics* that measure equity valuation (above). Their conclusion? Stocks are not overvalued; indeed, by most metrics, they are fairly valued. Key bullet points: • S&P 500 has been playing catch up to other…Read More

Category: Investing, Valuation

Surprise! 2Q Sales Growth = +2.7%

click for larger graphic Source: Merrill Lynch Research     We interrupt the upcoming economic apocalypse and market collapse for this surprising message. Earnings are being revised higher, as are Revenues as well. Merrill Lynch, who tracks these sorts of things, notes that the latest revised expectations for Q2 are “1.3% higher than they were…Read More

Category: Earnings, Valuation

Readying for Financial Bubbles to Burst

Readying for Financial Bubbles to Burst By Andy Xie Caixin 07.29.2013     Small troubles regarding trust products and the property market will be worth enduring if major economic gains can be made Some financial accidents, e.g., trust products defaulting, may occur in the coming months. Their impact on the real economy will be limited….Read More

Category: Psychology, Think Tank, Valuation

Five Bubbles?

The stock market has been choppy since mid-June, thanks in part to tapering talk and even more data that proves China is slowing down. MarketWatch’s Laura Mandaro discusses five bubbles investors need to watch

Five Bubbles Investors Need to Watch

Category: Markets, Sentiment, Valuation, Video

Earnings vs Equities Since 2009 Lows

S&P500 Earnings, Quarterly versus Price (Q1 2009- Present) Click to enlarge Source: Bloomberg Data   S&P500 Earnings, Trailing Year versus Price (1990 – Present) Source:  Dan Greenhaus, BTIG   Following last week’s discussion on narratives, I want to direct your attention to the charts above. One shows the quarterly recovery in earnings and prices since…Read More

Category: Earnings, Valuation

Technology & Retail Obsolescence

I forgot to publish my Bloomberg appearance this past week — here are two of the segments, mostly on retail and obsolescence:

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Category: Media, Really, really bad calls, Retail, Technology, Valuation, Video

Housing Recovery Elusive for U.S. Homebuilders

Click to enlarge Source: Bloomberg     Interesting chart form Dave Wilson showing how elusive the U.S. housing market’s rebound  has been for the Homebuilders. Existing single-family homes sold at about the same pace in May as they did in January 2000, according to data compiled by the National Association of Realtors. New home sales…Read More

Category: Cycles, Real Estate, Valuation