The main reason high prices foretell paltry gains is that
rich valuations make dividend yields smaller.
Not exact matches
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.
Rich margins and racy growth
make it a close match for the prancing horse, justifying a $ 7bln
valuation, and sixfold return for rescuer Andrea Bonomi.
The state owns the land, but does not fully tax its rising
valuation or rent - of - location that has
made many families
rich.
At the surface, when we look at
valuation measures and other fundamentals and compare them to historical precedents, there is a case to be
made that stocks (in particular in the US) are above fair value, if not
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.
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.
But by combining factor
valuation with past performance, investors gain a
richer toolkit for
making well - informed allocation decisions among smart beta managers.
The home page of my A
Rich Life blog contains a section called «People Are Talking» at which I set forth 105 comments from both big - name experts and ordinary investors about the need to
make the transition from the failed Buy - and - Hold model for understanding how stock investing works to
Valuation - Informed Indexing, the investing model of the future.