FUNDAMENTALS – MARKETS REMAIN OBSCENELY OVERVALUED — SOURCE: 11-03-17 Doug Short – “Market Remains Overvalued” — Here is a summary of the four market valuation indicators we update on a monthly basis. The Crestmont Research P/E Ratio (more) The cyclical P/E ratio using the trailing 10-year earnings as the divisor (more) The Q Ratio, which […]
MM Valuations Fundamentals
FUNDAMENTALS – MARKETS REMAIN HIGHLY OVERVALUED
FUNDAMENTALS – MARKETS REMAIN HIGHLY OVERVALUED — SOURCE: 10-03-17 Doug Short – “Market Remains Overvalued” — Here is a summary of the four market valuation indicators we update on a monthly basis. The Crestmont Research P/E Ratio (more) The cyclical P/E ratio using the trailing 10-year earnings as the divisor (more) The Q Ratio, which […]
FAKE NEWS: WARREN BUFFETT SAYS STOCKS ARE FAIRLY VALUED??
FAKE NEWS: WARREN BUFFETT SAYS STOCKS ARE FAIRLY VALUED?? You know markets must be near a top when CNBC starts distorting its facts to increase viewership. CNBC viewership growth has been problematic for a few years now following two major market draw-downs since the Dotcom Bubble popped and investors lost interest in the markets. With […]
PEAK “PEG” – THE S&P HAS NEVER, EVER BEEN THIS EXPENSIVE
PEAK “PEG” – THE S&P HAS NEVER, EVER BEEN THIS EXPENSIVE — SOURCE: 08-24-17 Fasanara Capital – ” “Peak PEG” – The S&P Has Never, Ever Been This Expensive” — Measuring the Equity Bubble In this brief note we discuss how, on some reasonable metrics, the S&P may qualify as the most expensive in history. When compared to potential […]
THE S&P 500 IS OVERVALUED ON 18 of 20 VALUATION METRICS
THE S&P 500 IS OVERVALUED ON 18 of 20 VALUATION METRICS — SOURCE: BoAML via Taken From 08-17-17 – “The S&P 500 Is Now Overvalued On 18 Of 20 Valuation Metrics” — According to Bank of America: based on the 20 most widely used valuation metrics, the S&P remains substantially overvalued on 18 of 20 valuation […]
THE ASSET CLASS QUILT OF TOTAL RETURNS
THE ASSET CLASS QUILT OF TOTAL RETURNS
WHY THE FEDERAL RESERVE DOESN’T SEE THE BUBBLE
WHY THE FEDERAL RESERVE DOESN’T SEE THE BUBBLE For those Investment Funds that believe in the validity of the US GDP and also trust the US CPI Inflation measure – then the markets are not in a bubble. This is why the Federal Reserve cannot see that the market is in another historic bubble.
THE P/E10 RATIO AT HISTORIC 96.3 PERCENTILE LEVEL
THE P/E10 RATIO AT HISTORIC 96.3 PERCENTILE LEVEL –SOURCE: The P/E10 Ratio Legendary economist and value investor Benjamin Graham noticed the same bizarre P/E behavior during the Roaring Twenties and subsequent market crash. Graham collaborated with David Dodd to devise a more accurate way to calculate the market’s value, which they discussed in their 1934 […]
FALLING NUMBER OF M&A DEALS TELLS US ABOUT CURRENT VALUATION LEVELS
FALLING NUMBER OF M&A DEALS TELLS US ABOUT CURRENT VALUATION LEVELS — SOURCE: 06-07-17 ZeroHedge – “Citi’s “Scariest Chart” Prompts Concerns About Holding American Equities” — This year through June 5, 7,561 M&A deals were announced, the lowest count since 2013, according to S&P Global Market Intelligence. While M&A volume reached a record $2.055 trillion […]
US CORPORATE BUYBACKS HAVE DISTORTED LEVERAGE BETWEEN THE US & EUROZONE
US CORPORATE BUYBACKS HAVE DISTORTED LEVERAGE BETWEEN THE US & EUROZONE –SOURCE: 04-29-17 The Heisenberg Report – “Oops: The Buyback Party Is Over” — The debt that funds buybacks is being issued at artificially suppressed rates. This is just balance sheet leveraging or financial engineering assisted by central banks. It’s creating a leverage problem that looks […]