Not exact matches
Valuations on
high - yielding
stocks may have become overstretched in the
historically low - yield environment, potentially making them vulnerable if the markets experience a mean reversion shift.
Many (including me) believe the reason that both
stock prices and real estate prices are currently trading at
historically high valuation ratios is tied to the Feds current «experiment» in holding interest rates at almost zero for half a decade and running....
The S&P 500 registered a record
high after an advancing half - cycle since 2009 that is
historically long - in - the - tooth and already exceeds the
valuation peaks set at every cyclical extreme in history but 2000 on the S&P 500 (across all
stocks, current median price / earnings, price / revenue and enterprise value / EBITDA multiples already exceed the 2000 extreme).
The extreme
valuation premiums afforded to defensive,
high - quality and
high - growth
stocks means that their inverse corollaries — cyclically geared value
stocks — are
historically cheap and under - owned.
Historically,
stocks do tend to trade at
higher valuations when bond yields are lower.
The extreme
valuation premiums afforded to defensive,
high - quality and
high - growth
stocks means that their inverse corollaries — cyclically geared value
stocks — are
historically cheap and under - owned.
Knowing how
stocks are priced
historically relative to some metric like earnings or cash flows is far more instructive than knowing whether
stocks are at an all time
high or not (we've addressed the predictive utility of
stock valuations in several posts, including here and here).
American
stock valuations (C Fund
stocks) are considered
historically very
high now.
Finding the yield on cash unacceptably low, people who have invested conservatively for years are beginning to throw money into
stocks, despite the obvious
high valuation of the market, its
historically low dividend yield and the serious economic downturn currently under way.
Expensive
stocks, on
historically low EBITDA yields (
high valuations), offered only a little over 1 percent.
Research performed by Cambria and set forth in Meb Faber's book Global Value: How to Spot Bubbles, Avoid Crashes, and Earn Big Returns in the
Stock Market, shows that historically stock market returns are lower when starting valuations are high, and future returns are higher when starting valuations are
Stock Market, shows that
historically stock market returns are lower when starting valuations are high, and future returns are higher when starting valuations are
stock market returns are lower when starting
valuations are
high, and future returns are
higher when starting
valuations are low.
the bull case which assumes that investors will perpetually assign a
historically high valuation to the
stock), total return annual will be just 6.7 %.