The Real Question

(Excerpted from John Reese’s May 15 Validea Hot List newsletter) The big question for the market continues to be whether or not the recent rally is for real. Given the cooling off of the past week or so, the weaker-than-hoped-for April retail sales data, and the fact that we’ve just gone through one of the steepest bounce-back inclines in history, a number of pundits are saying that the run is over. Whether they’re correct or… Read More

Why Those 1982 Valuations Might Never Come

As the current market rally has evolved, one of the main arguments against this being the start of a new bull market has involved valuations. While value metrics like the 10-year P/E ratio and Tobin’s Q have been low compared to historical standards, they haven’t gotten as low as they have in other past downturns. That, some say, means the market will likely tumble back downward until we hit or come close to the all-time… Read More