Plus from
a stock market standpoint, we are probably facing a lost decade where it goes nowhere for over 10 years.
Not exact matches
From a financial stability
standpoint, I view the increased volatility as an important reminder to
market participants that
stock prices can be quite sensitive to economic data.3
From a practical
standpoint, when you understand these calculations, the implications become clear: If a company has a lot of potential dilution on its books, and the
stock price then declines either due to a company - specific situation, a recession, or a broad
stock market collapse, all of that dilution could disappear from the diluted EPS calculation.
From a historical
standpoint, however, when the equity
market has joined persistent overvalued, overbought, overbullish extremes with deteriorating
market internals, with a cherry on top featuring two - tiered speculation in glamour
stocks and heavy new issuance of
stock by companies that predominantly have no earnings, we find it difficult to find any precedent that hasn't worked out quite badly.
Stocks with high dividend yields are attractive from the
standpoint that they are providing meaningful income when the broad
market is flat, they can buffer against a downturn due to the yield they're throwing off, and best of all, during a
market upturn, they continue to provide yield and capital appreciation simultaneously.
But from the
standpoint of a long - term investor, it's useful to look over the past 7 + years of profitless excitement in the
stock market and ask whether tracking every fluctuation in the
market - even participating in periodic, marginal new highs - is a necessary objective.
Bond yields may be falling, and inflation nonexistent, making money
market fund yields microscopic... the relative advantage from a financing
standpoint has swung to
stocks, and the prices rise.
From a policy
standpoint, the research brief's authors believe slowly raising interest rates could continue to feed the
stock market's exuberance.
From a historical
standpoint, however, when the equity
market has joined persistent overvalued, overbought, overbullish extremes with deteriorating
market internals, with a cherry on top featuring two - tiered speculation in glamour
stocks and heavy new issuance of
stock by companies that predominantly have no earnings, we find it difficult to find any precedent that hasn't worked out quite badly.
When
stocks hit certain extremes from a historical price level
standpoint, and likewise, sentiment is swinging to negative extremes, it's usually not long (often just hours or days) before the bottom is in and a new bull
market begins.
From an asset - liability management
standpoint, bull
markets get particularly precarious when caution is thrown to the wind, and people genuinely believe that there is no alternative to
stocks — that you are missing out on «free money» if you are not invested in
stocks.
He says that we should select investing rules that are in accordance with our own temperament, but in all cases ones that will always provide us with some exposure to common
stocks at all times because otherwise we might become so disappointed if we are 100 % in cash and the
market advances significantly it would «ruin [us] from the
standpoint of intelligent investing for the rest of [our] life».