Sentences with phrase «current high stock valuations»

Even though there has been a lot of commentary around current high stock valuations against lackluster earnings growth for the S&P 500, it is «neither practical or precise» for an investor to use this as a basis for lowering their exposure to stocks or selling their portfolio.

Not exact matches

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....

Coupling that lower valuation on the company's earnings with the much higher current yield leads to a lot of upside, along with what could be more near - term and long - term income from the stock.

As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.

In other words, if a very long - term investor is willing to rely on the notion that valuations when they sell will match or exceed the unusually high valuations of the present, that investor can reasonably expect stocks purchased at current levels to deliver long - term returns somewhere the range of 8 - 10 %.

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 current stock price implies significant profit growth despite increasing competition, negative margins, and worries over cash flow, which brings us to issue # 6, TSLA's sky high valuation.

With the stock's current valuation appearing reasonable, especially relative to the REIT's high quality, today could be a good time to more closely evaluate STORE.

However, if it were somehow known that rates would * permanently * stay as low as they currently are then stocks would logically be priced much much higher than their current valuations.

With the stock's current valuation appearing reasonable, especially relative to the REIT's high quality, today could be a good time to more closely evaluate STORE.

However, consider the current environment of the market: most stocks are at an all - time high and it is slim pickings to find good valuations.

As described in my introduction to the concept of the MCTWI, in times of high valuation your stock market investments are actually worth less than their current price.

In this article published in The Australian Roger discusses the current red flags in the market, will higher interest rates bring stock valuations down?

Are the current large market leaders enjoying higher stock prices simply because of their position as larger weights in the overall market funds (into which vast sums of money are pouring every month), rather than because they are good profitable companies with fair valuations?

Once again, Manulife is part of our B - team of top dividend stocks, in part because its current yield at 3.4 % is below some of its peers and trades at a slightly higher valuation.

As described in my introduction to the concept of the MCTWI, in times of high valuation (like today) your stock market investments are actually worth less than their current price.

A higher current yield compared to the stock's historical average suggests better valuation, because dividend yield is higher when price is lower, all else equal.

The direct cause that most of these estimates point to is high current valuations of stocks.

Of course, I'm talking about current large cap valuations... While I think market valuations can & will escalate ever higher, I'm already struggling with my fair share of individual stock valuations today.