Are Value Stocks Cheap or Expensive?

Are Value Stocks Cheap or Expensive? Value stocks usually trade at a 24% discount to the stock market.But as of 02/29/2019, they are trading at 31% discounts in the U.S., 33% discounts in Europe and 34% discounts in emerging countries. Picture source: GMO

Are Small Cap Stocks Overvalued?

Are Small Cap Stocks Overvalued? Small Cap Stocks Valuation: based on the forward PE ratio, the valuation of small cap stocks seems reasonable, with no sign of bubble. You may also like our “Stock Market Valuation.” Picture source: Bianco Research

Is The U.S. Stock Market Overvalued?

Is The U.S. Stock Market Overvalued? S&P 500 Valuation: the chart shows that the U.S. stock market is not cheap. Based on the forward P/E ratio, the S&P 500 is not extremely overvalued either. You may also like our “Stock Market Valuation.” Picture source: Bianco Research

Why the US Stock Market Was Overvalued by 14.2% on Oct. 1, 2018 vs. 7.7% Today?

Why the US Stock Market Was Overvalued by 14.2% on Oct. 1, 2018 vs. 7.7% Today? Because the value of the forecast changes over time (blue dotted line). The US stock market short-term forecast (S&P 500 with dividends reinvested) for the next 12 months is available to our subscribers. This great prediction model is updated daily.…

Stock Market Capitalization as a Percentage of Nominal GDP

Stock Market Capitalization as a Percentage of Nominal GDP This ratio is useful in determining whether the U.S. stock market is undervalued or overvalued relative to its historical average. The current reading is pretty high at 149.15%. You may also like the “Stock Market Valuation” and “S&P 500 Index – Earnings & Valuation.” Picture source: Bianco Research

Stocks, Bonds, Bills, and Inflation since 1926

Stocks, Bonds, Bills, and Inflation since 1926 Great chart showing the hypothetical value of $1 invested in stocks, bonds, and bills, at the beginning of 1926. Warren Buffett is right when he says that stocks are generally better than bonds. Picture souce: Morningstar

U.S. Yield Curve and Growth/Value P/E Ratio

U.S. Yield Curve and Growth/Value P/E Ratio The chart below shows that the shape of yield curve explains nearly 50% of the variation in value vs. growth multiples. Actually, when the U.S. economy is sluggish, investors prefer growth stocks. Picture source: BlackRock, Inc.

Will Value Ever Outperform Growth?

Will Value Ever Outperform Growth? When the U.S. economy is weak, investors prefer growth stocks. But value could outperform again, when the U.S. economy will be stronger. Picture source: Ned Davis Research