By Justin Carbonneau (@jjcarbonneau) — The market, by all intents and purposes, looks expensive based on most traditional valuation measures (the chart below courtesy of Liz Ann Sonders, Managing Director,…
Tag: Market Valuation
Two Shiller-Inspired Metrics, Two Wildly Different Valuation Stories
Yale professor and Nobel laureate Robert Shiller popularized the cyclically adjusted price-to-earnings ratio, but he’s moved on to a different metric called the excess CAPE yield, contends an article in…
Kaissar on Stratospheric Stock Valuations
The biggest question faced by U.S. investors, according to a recent Bloomberg article by columnist Nir Kaissar, is whether “the stock market can maintain its historically high valuation, a perch…
Revisiting the Market’s Valuation and the Value of Value
By Jack Forehand, CFA, CFP® (@practicalquant) — A few months ago, I wrote an article where I looked at the current valuation of the market, and some areas that looked relatively attractive on…
Going from Dividend Aristocrats to Dividend Kings Using Quality and Value
Something happened recently that has never happened before in the market. If you take the current rate of inflation and compare it to the S&P 500’s earnings and dividend yield,…
A ‘Red Flag:’ The S&P 500 Inflation-Adjusted Yield is Below Zero
The dividend and earnings yield of the S&P 500 is at a record low—even though it still beats that of Treasuries—and is raising some concern. This according to a recent…
What Valuation Can Tell You About the Market – And What it Can’t
There is no shortage of discussion in the media about the valuation of the market. And with the big market run we have had recently, valuations have once again become…
Pockets of Value in an Expensive Market
By Jack Forehand, CFA, CFP® (@practicalquant) — The stock market has had a huge run in the past 15 months. As of May 11th, the S&P 500 is now up 64%, off…
Oakmark’s Coniaris on Valuations and Strategy
In a recent CNBC interview, Oakmark portfolio manager Tony Coniaris shares insights on current valuations and investment strategy. Here are some of his comments: “Valuations are higher than normal, but…
Market Cap-to-GDP valuations: The Buffett Indicator Revisited
A recent article in CFA Institute takes an in-depth look at the so-called Buffett Indicator, or market-cap divided by Gross Domestic Product, with a focus on whether it is applicable…