S&P 500 Valuation – Forward P/E Ratio – May 10, 2019 S&P 500 Valuation: Forward P/E Ratio is 16.5 and equal to the 5-year average, above the 10-Year average (14.7).Based on the forward P/E ratio, the US stock market is not too expensive. You may also like our “Stock Market Valuation.” Image: FactSet Research Systems Inc.
IPOs Tend to Underperform the Market The evidence shows that, despite their higher risk, initial public offerings make poor investments. You may also like “Unicorn IPOs, Are They Good Investments?“
Sell in May and Go Away Is a Myth The S&P 500 Total Return from 1928 to 2018 shows that “Sell in May and Go Away” was not a winning strategy. Image: Charlie Bilello
Slow Growth is Good for Stocks In this Late-Cycle Expansion Slow growth maximises the length of the current US business cycle, and this is bullish for stocks. Image: James A. Kostohryz
S&P 500 1-Month Volatility History Since 1928 and VIX Since 1990 The stock market crash of 1929, the Black Monday of 1987 and the global financial crisis in 2008 were the most extreme events. Image: Goldman Sachs Global Investment Research
Leon Cooperman: Bull Market Cycles Don’t End at Fair Valuation, They Ended at Overvaluation “There is still more room for the market to run. We have a slowdown but not a recession and the market is ok.” Leon Cooperman (Omega Advisors founder) is a great value investor. https://www.youtube.com/watch?v=Xz6ihkuW1AM
One of the Best Yield Curves to Predict a Recession is Coming The spread between the 30-year and the 3-month treasury yields is one of the best recession signal of all the yield spreads. In recent history, a recession occurs about 12 to 18 months after the yield curve inverts. When an inverted yield curve…
Why Are Oil and Gas Companies Making Massive Investments for the Next 10 Years? Oil and gas companies are making massive investments for good reasons. The energy demand will flatten after 2030 and the oil and gas industry will go through a transition over the next decades. Below is the oil and gas forecast to 2050.…
Why Albert Einstein Said “Compound Interest Is the Eighth Wonder of the World” If you invest $3000 per year from 10 years before you turn 30, you would earn more money when you turn 70 than if you invest $3000 per year from 30 until 70. That’s the power of compounding, because the amount earned…
The World’s Best and Worst Places to Do Business Ranking 190 economies on measures of regulatory quality and efficiency, the United States came in at 8th place. Image: Visual Capitalist
Saying No to the Unimportant Things… “The difference between successful people and really successful people is that really successful people say no to almost everything.” -Warren Buffett Saying no to the unimportant things, but saying yes to the things that really matter. Image: Hedgeye Risk Management LLC