I think that market is
still at high valuations and want to keep some dry powder to deploy.
Not exact matches
«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.
Morgan Stanley analyst Vincent Meunier said the price
still implied a
valuation of 4.7 times sales and around 19 times operating profit (EBITDA) for the business,
at the
high end of recent deals in the sector.
When Main Management looked
at LIT as a potential buy, it was because of a downturn in the materials sector (LIT was
still trading
at too
high a
valuation compared to the mining and materials sub-sector ETF (XME).
At longer time frames, the basic relationship generally
still holds:
Higher U.S. stock market
valuations are associated with lower future returns.
Still, even in an environment where the market trades in a range of high valuation, it is appropriate to hedge exposure to risk at points where conditions are overvalued, overbought, and overbullish, and to establish more constructive exposure when conditions are overvalued, but oversold on a short - term basis (provided that the broad tone of market action still indicates a general willingness of investors to specul
Still, even in an environment where the market trades in a range of
high valuation, it is appropriate to hedge exposure to risk
at points where conditions are overvalued, overbought, and overbullish, and to establish more constructive exposure when conditions are overvalued, but oversold on a short - term basis (provided that the broad tone of market action
still indicates a general willingness of investors to specul
still indicates a general willingness of investors to speculate).
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.
The insatiable search for yield has driven many income assets to
high valuations, but dividend growers are
still attractively priced
at 13.4 times forward earnings, our analysis shows.
A non-obvious consequence is that although people raise more money
at higher valuations, they
still end up selling much more of the company.
«Because the ecosystem has become more transparent you are always competing with other firms,» says Ross Fubini, a partner
at Canaan, who adds startups are
still likely to choose the best venture capital firm, rather than the
highest valuation.
I
still like Anadarko, but
at a
higher valuation, it pays to take something off the table.
The insatiable search for yield has driven many income assets to
high valuations, but dividend growers are
still attractively priced
at 13.4 times forward earnings, our analysis shows.
Investors
still cite the low costs of ETFs, but with the S&P 500 trading
at a P / E ratio of 21x of
higher, and earnings growth remaining persistently low, Narhi and Barr don't think equity
valuations are worth the risk.
This study attempts to quantify whether a 4 percent withdrawal rate can
still be considered as safe for U.S. retirees in recent years when earnings
valuations have been
at historical
highs and the dividend yield has been
at historical lows.
Still, the reality is that this is one of the big risks of strategies of going with
high stock allocations
at times of
high valuations (when the risk of big price drops is greatest).
From Professor Robert Shiller's «Irrational Exuberance» Second Edition 2005, chapter 12, page 207: «The
high valuations that the stock market attained
at its peak in 2000, and the relatively
high valuations that it
still shows today, came about for no good reasons..»
This study attempts to quantify whether a 4 % withdrawal rate can
still be considered as safe for U.S. retirees in recent years when earnings
valuations have been
at historical
highs and the dividend yield has been
at historical lows.
The present environment is characterized by unusually overvalued, overbought, overbullish conditions, with rising 10 - year Treasury bond yields, heavy insider selling,
valuations on «forward earnings» appearing reasonable only because profit margins are more than 70 % above historical norms (fully explained by the negative sum of government and personal savings as a share of GDP), with the S&P 500
at a 4 - year market
high, in a mature market advance, with lagging employment indicators
still positive but more than half of all OECD countries already in GDP contraction, Europe in recession, Britain on the cusp, and the EU imposing massive losses on depositors in order to protect lenders in an unstable banking system where Cyprus is the iceberg's tip.
Our updated liquidation
valuation is
still some 60 %
higher at $ 12.0 M or $ 1.31 per share, so we believe that MATH
still represents good value.
Panics
still happen but they don't hurt you much (panics always begin
at times of insanely
high prices and those following a
Valuation - Informed Indexing strategy have little invested in stocks
at such times).