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.
Not exact matches
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.
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.
A reminder
on interest rate front - it's essential to recognize that if one believes depressed interest rates «justify» extremely
rich equity
valuations, what one is really saying is that depressed interest rates «justify» dismal subsequent returns
on stocks.
«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.
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.
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.
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.
On the other hand, both historically and even since 2009, when investors have shifted toward risk - aversion, as evidenced by divergent market internals,
rich valuations and fragile economic foundations have typically resulted in steep market losses.
That's not a «bearish call»
on precious metals shares, but does reflect somewhat
richer valuations for precious metals than we saw a few weeks ago when those stocks were declining notably.
Rich global
valuations, predominantly thin risk premiums, and uniformly rising global interest rates haven't rewarded investors historically,
on average.
Short term advances
on narrow breadth, dull volume and
rich valuations aren't terrible for us, but are far from ideal conditions.
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.
Whether or not you've had luck in the dating world this year, online dating site stocks have performed quite well in... Match Group Downgraded
On Rich Valuation
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.
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.
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.
The concern, however, seems focused not
on fundamentals but just a
rich valuation.
Valuation - Informed Indexing is Buy - and - Hold with the Get
Rich Quick element (the idea that you don't need to look at the price at which stocks are selling before putting money
on the table) deleted.
On the other hand, the S&P has soared an average 13.8 % a year over the past eight years and U.S. stock market
valuations are undoubtedly
rich.
We continued to maintain a conservative duration posture, as
valuations on government bonds continue to look
rich.