Not exact matches
«There is more concern
as private
valuations get
high and
as public
markets get volatile.»
Hedge fund legend Julian Robertson Jr. sees stock
market valuations as «very
high» and worries about a bubble forming.
Until very recently, tech stocks have been racing pretty
high, pulling stock
markets up with them
as their
valuations stretch.
His visionary project has rocketed to a
market cap of nearly $ 30 billion —
as high as the private
valuations Airbnb and Snapchat achieved — from $ 1 billion a year ago, when Fortune first placed him on its 40 under 40 list.
«They are raising now at a
higher valuation, but if you were to say «here is what the New York and San Francisco
markets are really worth in full legal compliance» and then re-run the numbers — however they do it — I don't know that they are still that $ 30 billion company,» Tusk was quoted by CNBC
as saying.
As for the original sky -
high valuation, Fitt says it was «entirely reasonable» given the
market conditions in the spring.
, I'd say that one obvious qualifier would be public
marketing technology companies with $ 1 billion or
higher valuations, such
as HubSpot and Marketo.
Separate monoline companies will be more focused, more efficient, generate better returns and,
as a result, command significantly
higher market valuations.
yields will hit the
highs on close end of the day... equity
markets setting up to be slammed tomorrow maybe but today they have run over weak shorts in the face of rates... the federal reserve see's this and again will wonder if they are behind on hikes, strong data, major expansion in credit, lack of wage growth rising bond yields and ballooning debt... rates will go much
higher and equities will have revelations
as to what that means for
valuations
The stronger the expectations for earnings growth, the
higher the stock
market tends to climb
as well
as valuations expand.
To the extent that lower Treasury yields are even weakly associated with
higher equity
valuations, recognize that this effect is also expressed over time
as lower subsequent stock
market returns.
«M&A activity globally is very
high, which is common in the late stages of an equity bull
market as both private equity and corporate owners look to cash in on rich
valuations,» Lait explains.
As the stock
market climbs to new
highs,
valuations are also rising.
If we define the recent downturn
as a bear
market anyway, the recent low will represent the
highest level of
valuation that has ever prevailed at the bottom of a bear
market.
While Loop Capital
Markets didn't see it
as a breakout quarter, which might justify a
higher valuation, JMP Securities said its
valuation for the company is roughly in line with the...
While insurance sector M&A has cooled off after a bumper 2015 due to what many players see
as over-inflated
valuations, soft insurance
markets, increasing competition,
higher claims and weak investment yields are putting profitability under pressure, meaning that M&A remains a possible source of growth according to Credit Suisse.
The
high valuation of the S&P 500 shouldn't send investors running for the hills, but I do expect that the
market will be more turbulent this year
as we see corrections in individual stocks and groups of stocks that have gotten especially overvalued.
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 weaknes
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 weaknes
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 weaknes
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.
High stock
market valuations and slowly rising interest rates could mean lower long - term returns
as well
as higher market volatility.
One can relate this directly to a 10 - year prospective return by recalling that historical tendency for
market cycles to establish normal prospective returns — if even briefly
as in 2009 — at their troughs (and it's typical for troughs to reach below average
valuations and much
higher prospective returns than the 10 % historical norm).
A nine - year expansion and
high valuations need not be cause for undue concern
as long
as lower corporate tax rates and opportunities in fast - growing foreign
markets continue to buoy corporate earnings.
Now,
as many investors worry about a global growth slowdown, rising rates and
higher volatility in U.S. equity
markets, dividend growers offer potential opportunities due to their healthy balance sheets,
as well
as better
valuations, and lower volatility.
While there are a number of factors for investors to stay mindful of — including relatively lofty US
valuations (the S&P 500 price - to - earnings ratio suggests stocks may be expensive relative to historical values), geopolitical tensions around the globe (including the Korean peninsula), and legislative uncertainty (such
as the final details and implementation of tax reform legislation)-- healthy corporate earnings have underpinned the
market's rally to record
highs.
Putting aside the performance of bonds during the bear
market beginning in 1980 (both because the starting yields on Treasuries were so
high but also because the bear
market was relatively mild
as the decline began from relatively low levels of
valuation), what's interesting about the above chart is how dependably bonds protected a portfolio during equity bear
markets.
Market continue to creep
higher — even in light of
valuations and headwinds
as the search for yield continues.
Developed -
market earnings are expected to grow faster than those in the U.S., and their stock
valuations aren't
as high, making them attractive investments in our view.
Yes, the
valuation of the
market (
as measured by P / E) was fairly
high in 1929.
But
as the Fed's stock
market «
high - wire juggling act» continues, the
valuation of the stock
market becomes increasingly dislocated from the underlying economic and financial
market fundamentals.
As everyone debates whether the US stock
market is in another secular bull — near an all time
high valuation level — there is one developing in Japan right before our eyes at more than reasonable
valuations that almost no one believes is possible.
With one week left in April I decided to deploy some fresh capital into a
market that has been very, very generous
as of late in terms of giving us much better buying opportunities in many «name brand» stocks that have been previously deemed untouchable because of low yields,
high valuations and relatively speaking,
high prices.
US Federal Reserve (Fed) Chair Janet Yellen fanned the flames last month when she warned «there are potential dangers» in current
market valuations, which she described
as «quite
high.»
DUBAI, May 1 - Saudi stocks slid 0.6 percent on Tuesday
as concerns grew about rich
valuations for blue - chip stocks after the region's biggest stock
market hit a more than a two - year
high last week.
«Benteke is a great player but he has a very
high market valuation,» Orman was quoted
as saying by Turkish - football.
1) Overpaid players on
high salaries 2) Leave selling players at the very end of transfer window 3) Club not knowing what their priorities are during a transfer window by planning beforehand 4) Being too greedy for wanting
higher valuation price on average players or selling players bellow their
market rate 5) Letting players hold the club to ransom by giving them game time just to make them happy 6) Using the lack of players leaving
as an excuse for not signing more players
And it's reported to be shooting for an IPO soon, with hopes of reaching a
valuation as high as $ 6.7 B. Rocket Internet's strategy is to copy ideas that work in certain
markets and build the same exact business model in regions that haven't yet been explored.
On the subject of
valuations, I believe that the peak level of earnings seen in the past
market cycle was somewhat
high, so I'd agree with Bill Gross at PIMCO in the sense that we're not likely to see that level of earnings
as the «norm.»
We expect
markets to be characterized by a
higher level of volatility
as central banks allow
market forces to dictate
valuations.
Though some analysts discuss these secular periods
as if they are some sort of magical 17 - year periodic structure that is inherent to the
markets, our view is much simpler: over the long - term,
markets fluctuate between extreme optimism /
high valuations and extreme pessimism / depressed
valuations.
Higher yields at lower market valuations and more shares at lower prices equal faster realized profits as the numbers move higher during the next upward movement of the
Higher yields at lower
market valuations and more shares at lower prices equal faster realized profits
as the numbers move
higher during the next upward movement of the
higher during the next upward movement of the cycle.
In that sense all analysis of stock
market based on historical metrics do nt make much sense since composition of stocks is entirely different in different era and
as more capital efficient business model evolve and their time to
market cycle shrinks stocks likely to command
higher valuations and suddenly lower
valuations during short period of time like already happening for many technology companies and
as influence of technology on overall cost structure of companies increases (for example: robotics replace many of employees cost etc)
valuation matrix of most companies likely to get affected dynamically in short duration of time than in the past.
Valuations also show the risk of owning bonds (and bond proxies) could rise further, as market uncertainty and easy monetary policy potentially drive valuations of interest - rate sensitive asse
Valuations also show the risk of owning bonds (and bond proxies) could rise further,
as market uncertainty and easy monetary policy potentially drive
valuations of interest - rate sensitive asse
valuations of interest - rate sensitive assets
higher.
With stock
market valuations rather
high, could it make sense to adopt such a strategy
as an alternative to indexing?
Now,
as many investors worry about a global growth slowdown, rising rates and
higher volatility in U.S. equity
markets, dividend growers offer potential opportunities due to their healthy balance sheets,
as well
as better
valuations, and lower volatility.
As John Hussman noted in Inflation, Correlation, and
Market Valuation, low inflation may often coincide with
high multiples, but they don't justify them.
All those experts who keep predicting
market like
valuations are
high now etc etc and now
markets are on peak and hence will fall, no body can predict
markets as their raise or fall depends on global and domestic factors, hence, you can not predict the
markets and my final conclusion is that one can not time
markets.
As an investor who buys shares in individual,
high quality companies the
valuation of the entire
market is but a secondary concern.
Growth companies such
as Google are expected to increase their profits markedly in the future; thus, the
market bids up their share prices to
high valuations.
Advisers sharply increased allocations of client assets to U.S. equities, but some planners are cautioning against piling into a
market where they see
valuations as being too
high.
In a whipsaw period like that which we have had from 1998 to the present, it makes a lot of difference, because many investments during the bubble era put fresh capital into the
market at a time of
high valuations, with buybacks predominating
as valuations troughed.
As Visteon exits chapter 11, the near to medium - term upside will likely be driven by a combination of 1) a couple of imminent,
high probability catalyst's that should force the
market to assign this company with a much more appropriate
valuation on an absolute basis and relative to its peers and 2) various operational and financial enhancements that the company recently undertook while in bankruptcy should continue to yield visible and increasingly positive operating results for the foreseeable future.