Posts filed under “Valuation”
Here’s a little surprise: The top military contractors have all been doing pretty well since Sequestration hit.
I know what you’re thinking: They already got hit in anticipation of Sequestration. Only they didn’t.
Boeing (BA) and Oshkosh OSK are near 52 week highs, while United Technologies (UTX) and McKesson (MCK) 20% are at all time highs. (Table below)
So much for the impact of these government cutbacks on Military contractors . . .
Chuck Hagel on defense budget cuts under sequestration: ‘We’re adjusting to the realities’ (NBC)
The case for the sequester’s defense cuts (WonkBlog)
McKeon ‘Very Concerned’ About Sequester’s Military Impact (Washington Wire)
click for larger graphic All of the major markets have had a huge run off of the lows (though they are barely flat since the 07 peaks). What does this mean? Are markets too expensive, or are they better priced than last time? What say ye? Source: Is Anything Cheap? JASON…Read More
> My Sunday Washington Post column this week looks at two of the major topics of financial news – Politics & Economics. The column draws the counter-intuitive conclusion that these aspects of daily life are mostly meaningless to investors much of the time. Under the headline Voters should pay attention to politics. Investors should ignore it,…Read More
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