Sentences with phrase «of rich valuations»

While certain high growth companies might be fairly valued at these levels, highly mature, low growth businesses like WD - 40 have no history of trading consistently at these sorts of rich valuations.

As of last week, the Market Climate in stocks was characterized by a combination of rich valuations, unfavorable market action, continued negative economic pressures on forward - looking indicators, and additional indicators (sentiment, credit spreads, etc) associated with a poor average return / risk profile in stocks.

Be Mindful of Rich Valuations in Low - Volatility Stocks.

It is mainly a history of low yields being pressured higher - of thin risk premiums being pressured to widen - of rich valuations being pressured lower.

The anchoring of investor expectations to a period of rich valuations and unusually wide profit margins may not be reasonable, but it prevents any ability to «forecast» a significant near term decline, much less a sustained downtrend.

Investors need to get that story right because once the speculative merit goes away, it will be essential to recognize that nothing else can be expected to «save» the market from the consequences of these rich valuations.

As I emphasized last week, even if we had no concern at all about a second wave of credit strains, we would still be fully hedged here based on the present combination of rich valuations, overbought conditions, overbullish sentiment, and hostile yield pressures.

Risk - seeking investor preferences allow markets to be tolerant of rich valuations and even bubbles, while a subtle shift to risk - averse investor preferences often signals an impending and catastrophic end to those valuation extremes.

The corollary to this level of rich valuation is that our projection for 10 - year total returns for the S&P 500 is now just 5.3 % annually.

Not exact matches

After pricing its IPO at $ 17 a share, the owner of the popular disappearing - message app has a market value of roughly $ 24 billion, more than double the size of rival Twitter (twtr) and the richest valuation in a U.S. tech IPO since Facebook (fb) five years ago.

That means that Snap stock will be insanely expensive: At a $ 24 billion valuation, Snap shares will have a price - to - sales ratio of 59, making it far richer than Facebook stock and other social media companies — and likely the most expensive tech IPO ever.

Based on a market valuation of US$ 50 to US$ 104 billion (at the high end), check out how rich Mark Zuckerberg, Bono and others will be when Facebook hits the open market.

Given that valuations were already rich when the VIX, a commonly used measure of S&P 500 volatility, was at 10, a doubling of volatility suggests stocks should be trading closer to 16 or 17 times earnings, not 21.

Our friends at Wealth - X, a firm that does research and net - worth valuations on ultra-high net worth individuals, compiled a list of the richest people in the world under 35.

When you look back on this moment in history, remember that rich valuations had not only been associated with low subsequent market returns, but also with magnified risk of deep interim price losses over shorter horizons.

I've long noted that the analysis of market action can help to overcome some of this frustration, as stocks have often provided good returns despite rich valuations so long as market internals were strong, and the environment was not yet characterized by a syndrome of overvalued, overbought, overbullish, and rising yield conditions.

But regardless of the answer, recognize that extremely rich valuations will still be associated with dismal long - term expected returns.

The state owns the land, but does not fully tax its rising valuation or rent - of - location that has made many families rich.

«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.

To expect normal or above - average long - term returns from current prices is to rely on the market bailing out the rich overvaluation of today with extreme bubble valuations down the road.

Last month, at the MarketCounsel Summit in Miami, during a panel discussion about advisory - firm valuations, Rich Gill of Wealth Partners Capital Group cited what might be 2018's most bankable theme in the financial advice space.

It's important to distinguish between the level of valuations, which has indeed become breathtakingly extreme in recent years, and the mapping between valuations and longer - term market returns (which we observe as a correspondence, where rich valuations are followed by poor returns and depressed valuations are followed by elevated returns).

Still, given the market's rich valuation, one would have expected in advance that the Fund would be largely hedged, and to that extent, the Fund's hedging approach performed in 2006 basically as expected - it muted the impact of market fluctuations on the Fund, and contributed several percent in «implied» interest.

All rich valuations do is provide a window of opportunity for current holders to obtain a wealth transfer from buyers, but the only way to realize that is by selling.

With regard to the current market cycle, the period since 2000 has been unique in that it has reflected an environment of persistently rich valuations.

Our measures of market action are still broadly unfavorable, and allowing even the mildest adjustment for profit margins and the position of earnings in the economic cycle, valuations remain rich.

With valuations very rich, bullish sentiment high, and stocks generally overbought, there's a certain momentum to the market that makes it likely - in terms of probability - that stocks will be higher in the weeks ahead.

Warren Buffett, the world's second - richest man, distinguishes between periods of comparatively high and low stock market valuation.

Put simply, when valuation measures are steeply elevated but investors remain inclined to speculate, as evidenced by very broad uniformity of market action and the absence of internal divergences, rich valuations often have little effect on market outcomes.

So despite periodic speculative runs, rich valuations have an annoying way of ruining the fun.

Netflix's stock valuation has been a constant source of debate for years, and currently is trading at a price - to - earnings (P / E) ratio of 123x, which is rich by almost every measure — no matter what kind of business model it is.

The «canonical» market peak typically features rich valuations, rising interest rates, often a reasonably extended and «flattish» period where, despite marginal new highs, momentum has gradually faded while internal divergences have widened, and finally, an abrupt reversal in leadership, from a preponderance of new highs over new lows (both generally large in number) to a preponderance of new lows over new highs, with the reversal often occurring over a period of just a week or two.

Longer - term, the market's rich valuations on a variety of internals is already enough to anticipate fairly unsatisfactory returns for buy - and - hold investors in the major indices over the coming 5 - 7 years.

Given rich global stock market valuations, slumping quality of internal market action, and rising global interest rates, this is not an appropriate time to accept significant market risk.

This measure puts U.S. equity valuations in the richest quartile of their history, as the blue line indicates in the chart.

This means that the high valuation of science and education, so widespread across the world, is an expression of the interests of the rich and powerful.

The encounter with the sacred and the valuation of spiritual gifts over material riches revives their sense of security and personal value.

As far as top 20 richest clubs are concerned according to recent forbes valuation, eight premier league clubs feature in top 20 and we might expect a few more in couple of years time.

Given that valuations were already rich when the VIX, a commonly used measure of S&P 500 volatility, was at 10, a doubling of volatility suggests stocks should be trading closer to 16 or 17 times earnings, not 21.

This measure puts U.S. equity valuations in the richest quartile of their history, as the blue line indicates in the chart.

As of last week, the Market Climate for stocks remained in the most negative 0.5 % of all historical observations, and was characterized by rich valuations, unfavorable market action, and a variety of hostile «Aunt Minnies» that are associated with poor subsequent returns.

Even if we observe rich valuations, there can be some justification for accepting market risk during periods when market internals are uniformly strong, provided that the environment is not also characterized by a syndrome of overbought, overbullish and rising - interest rate conditions.

What Bernanke views as a «wealth effect» is simply the richer valuation of existing cash flows that goes hand in hand with lower prospective returns in the future.

But even during post-credit crisis periods, some combinations of market conditions have warranted at least a moderate speculative exposure to market fluctuations despite rich valuations.

But given today's low interest rates (recently about 2.3 % for 10 - year Treasuries) and relatively rich stock valuations (Yale finance professor Robert Shiller's cyclically adjusted P / E ratio for the stock market recently stood at 29.2 vs. an average of 16.7 since 1900), it would seem to strain credulity to expect anything close to the annualized returns of close to the annualized return of 10 % for stocks and 5 % for bonds over the past 90 years or so, let alone the dizzying gains the market has generated from its post-financial crisis lows.

An average bear market within a «secular» bear market period (a period generally about 17 - 18 years, where valuations begin at rich levels and achieve progressively lower levels over the course of 3 - 4 separate bull - bear cycles) is about 39 %, and wipes out about 80 % of the preceding bull market advance.

We'll start with the fact that there is [sic] essentially four kinds of penny stock companies in the Pump & Dump world: (1) the kind where the management is in on the scam and is directly knowledgeable and complicit with the intent to deceive the public; (2) the kind where some poor schmoe has a great idea (at least he thinks it is) that requires financing, and becomes the mark of a parasitic «funder» who makes all kinds of promises of unlimited monies and riches beyond the mark's wildest dream; (3) the kind where the company is absolutely for real but the shares have been hyped (sometimes hijacked) into ridiculous valuations; and, (4) a hijacked empty and inactive shell.

Presently, deteriorating stock market internals suggest fresh skittishness among investors, which coupled with still - rich valuations (on the basis of normalized earnings) often results in particularly negative outcomes for stocks.

Low - volatility strategies, already operating from a baseline of low projected returns due to their currently rich valuations, are particularly vulnerable to the impact of trading costs.

But considering today's low interest rates and relatively rich stock valuations, I'd say it would be foolish to count on returns anything like those of the recent past or, for that matter, even the roughly 10 % annual gains for stocks and 5 % for bonds over the past 90 or so years.