One singular truth to come out of the meme-stock frenzy of 2021 is that the price of stocks and other assets are determined by supply and demand, with demand being…
Tag: Market Valuation
Market Still Not Priced For Recession
Wall Street still isn’t factoring in the increasingly more dire threat of a recession, and investors cannot rely on the Fed to swoop in and save them this time, contends…
Ducking Market Crashes The Buffett-Shiller Way
An article in Forbes offers an approach for protecting yourself against market volatility, named the Buffett-Shiller method for the two market watchers who inspired it. Rather than a formula for…
Revisiting the Market Valuation in the Wake of This Year’s Decline
By Jack Forehand, CFA, CFP® (@practicalquant) — It looks like the 2022 bear market might be with us longer than many of us had hoped. A study of history would have told us…
Six Charts to Help Understand Stock Valuations in the Wake of This Year’s Decline
By Jack Forehand, CFA, CFP® (@practicalquant) — The market’s amazing run in the wake of the pandemic has finally hit its first speed bump this year, with the S&P 500 down around 15%…
Challenges for the 60/40 Balanced Investor in Today’s Market
By Justin Carbonneau (@jjcarbonneau) — Late last year I gave a presentation to investors title, “Alternatives to the 60/40 Stock/Bond Portfolio: Why Investors Should be Thinking About this Now in…
Lies, Damn Lies and Market Valuation
By Jack Forehand, CFA, CFP® (@practicalquant) — There has been a lot of talk in recent years about the market’s valuation. And much of that talk has been centered around how expensive it…
The Truth About P/E Ratios
While some analysts argue that the S&P 500’s higher-than-average price-to-earnings (P/E) ratio is setting up a weak 2022, an article in Fisher Investments posits that valuations are actually down over…
Some Observations on the Current Market Valuation
By Jack Forehand, CFA, CFP® (@practicalquant) — We have had a massive run in the US market since the 2020 bear market bottom. Although the wall of worry has been our constant companion…
“Even Crazier” Than The Dotcom Bust Says Munger
In remarks made at the Sohn Conference in Sydney, Australia, Berkshire Hathaway’s Charlie Munger said that the current economy is “even crazier” than the dotcom boom and bust in the…