Sentences with phrase «stock valuation extremes»

If they climb much further, stock valuation extremes lose their low rate «justification» and real estate affordability could get tossed to the wolves.

I don't know if U.S. stocks will power ahead from here, dismissing everything from Trump troubles to stock valuation extremes to collapsing retailers.

Not exact matches

That's the one signal that has been favorable during most of the recent advance, and it is why, despite extreme valuations, I left as much as 20 % of our stocks unhedged until the interest rate climate turned hostile a couple of weeks ago.

Stock prices are up and valuations are at extreme levels despite faltering earnings, Fed rate hikes and a slowing economy.

I've noted before that while the bubble peak in 2000 was the most extreme level of valuation in history on a capitalization - weighted basis, the recent speculative episode has actually exceeded that bubble from the standpoint of speculation in individual stocks.

Deep Value investors employ a more extreme version of value investing that is characterized by holding the stocks of companies with extremely low valuation measures.

Again, if our measures of market internals were to improve, we would allow for the possibility that reliable measures of market valuations could surpass their 2000 extreme, and we would not place a «cap» on how high stock prices could move.

The S&P 500 registered a record high after an advancing half - cycle since 2009 that is historically long - in - the - tooth and already exceeds the valuation peaks set at every cyclical extreme in history but 2000 on the S&P 500 (across all stocks, current median price / earnings, price / revenue and enterprise value / EBITDA multiples already exceed the 2000 extreme).

Back in October, I noted «investors clearly are approaching the current market with every belief that the extreme valuations of 2007 represent the sustainable norm to which stocks should return.

The extreme valuation premiums afforded to defensive, high - quality and high - growth stocks means that their inverse corollaries — cyclically geared value stocks — are historically cheap and under - owned.

While none of these portfolios is likely to produce particularly inspiring returns — a function of already elevated valuations for both U.S. stocks and bond — the difference between the two extremes is still important.

The extreme valuation premiums afforded to defensive, high - quality and high - growth stocks means that their inverse corollaries — cyclically geared value stocks — are historically cheap and under - owned.

The market's valuation in 2000 was so extreme that the resulting secular bear has the potential to be more extended than others, unless the market was suddenly to collapse to valuations near those where historical secular bulls have started (where stocks have typically been priced to achieve 10 - year prospective returns near 20 % annually).

Stock markets are maintaining their momentum but buyers should beware of the extreme valuation gap between the highest and lowest - priced stocks.

My goal is to use the historical data to develop an approach to investing that avoids the negatives at both extremes of valuation: (1) being too heavy in stocks at times of overvaluation; and (2) being too light in stocks at times of undervaluation.

My view is that it is best to maintain a moderate position in stocks at times of high valuation and that it is also best not to go too extreme on the high side in one's stock allocation at times of low valuation (because in the short - term stocks may drop sharply even from a starting point at which valuations are low).

* Accounting issues: in one sense this takes the fourth point to an extreme - the stock market's valuation of a company is flawed, not because it's focusing on the wrong metrics but because profits or other key financial data are being flattered or even fabricated by company management.

As a result, it can be very easy to fall so much in love with a great company that you can't resist investing in the stock even when the valuation is extreme.

The manager will make tactical shifts in the fund's asset mix when he feels that stock or bond valuations are at an extreme.

Like Wal - Mart, but not as extreme, Colgate's stock price went sideways until October of 2004 until once again it touched its True Worth ™ valuation line.

Deep Value investors employ a more extreme version of value investing that is characterized by holding the stocks of companies with extremely low valuation measures.

Meanwhile, stock valuations are at historical extremes in terms of price - to - earnings ratios, dividend yields, book values and projected corporate earnings.

«Momentum (growth) stocks trade at an extreme premium to value stocks, with the valuation spread the highest since 1980, except for during the tech bubble,» JPMorgan strategist Dubravko Lakos - Bujas wrote recently.

It may seem implausible that stocks could have gone this long with near - zero returns, and yet still be at valuations where other secular bear markets have started — but that is the unfortunate result of the extreme valuations that stocks achieved in 2000.

As well, I have reported on my blog about whether the extreme market valuations Japan experienced in the late 1980s work for or against the idea of reducing stock allocations when valuations become extremely high.

In both cases, stock valuations were pushed to historical extremes as all - time market highs occurred on a seemingly weekly basis (roughly one - fourth of 2017's trading days ended at a new all - time high!).

Combine that fact with today's extreme stock valuations and it's easy to see why our investing narrative has gradually shifted away from a primary focus on maximizing growth to preserving capital.

First, extreme stock valuations challenge the notion that you should always follow the central banks (e.g., Federal Reserve, European Central Bank, Bank of Japan, Bank of England, etc.).