Sentences with phrase «valuation extremes»

If those factors were positive here, our concerns about immediate downside risks would be less pointed, regardless of current valuation extremes.

With valuations extreme, interest rates rising, and market action now strongly unfavorable, the characteristics which were present during the vast majority of the recent bull market are now completely absent.

You'll notice that recent valuation extremes actually moved beyond the 1929 and 2000 peaks.

It's both dangerous and needless to dismiss current 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.

The only alternative to this view is to imagine that the collapses that followed valuation extremes like 1929, 1973, 2000, and 2007 somehow emerged entirely out of the blue, ignoring the fact that valuations accurately projected likely full - cycle losses, and remained tightly correlated with total returns over the subsequent 10 - 12 year horizons.

Though nearly every morning prompts the phrase «Yup, they're actually going to do this again,» the steepening pitch of this ascent — coupled with record valuation extremes, record overbought extremes, and the most lopsided bullish sentiment in over three decades — now produces the most extreme «overvalued, overbought, overbullish» moment in history.

A month ago, I noted that prevailing valuation extremes implied negative total returns for the S&P 500 on 10 - 12 year horizon, and losses on the order of two - thirds of the market's value over the completion of the current market cycle.

However, the overall market return / risk climate could become consistent with a more neutral or modestly constructive outlook (with an obligatory safety net in either case, given current valuation extremes) if market internals were to improve decisively.

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.

Investor response to valuation extremes in the 98 % -100 % percentile (e.g., price - to - book, price - to - sales, EV - to - sales, price - to - earnings, return on equity, market - cap - to - GDP, PEG ratio, EV - to - EBITDA, dividend yield, Tobin's Q, etc.) typically focuses on «never - before - seen» interest rate lows.

Risk - seeking investor preferences allow markets to be tolerant of rich valuations and even bubbles, while a subtle shift to risk - averse investor preferences often signals an impending and catastrophic end to those valuation extremes.

«It is 2005 all over again in terms of the valuation extreme, the psychological excess and the denial,» Stack told Bloomberg.

This would not be a worst - case scenario, but only a run - of - the - mill cycle completion from the standpoint of current valuation extremes.

It's actually the standard, run - of - the - mill expectation given current valuation extremes, and it assumes substantial expansion in the U.S. economy over this horizon.

Yet particularly with trend uniformity unfavorable, they fail to grasp the precarious exposure to risk that underlies current valuation extremes.

With valuations extreme, and market action showing both a lack of trend uniformity and a lack of momentum in breadth (advancing issues versus declining issues), we have no willingness to take on market risk here.

Given current valuation extremes, I doubt that the median loss for any decile of stocks will be less than -40 % over the completion of the current market cycle, and I expect that losses will approach -60 % more typically than not.

Demand and supply pressures often move the market prices of corporate bonds to valuation extremes.

Valuation extremes would need to become valuation bargains or, at the very least, the Federal Reserve would need to expand its balance sheet (QE / QE - like activity) yet again.

The famed money manager sounded the alarm that the current housing «valuation extreme» looks a lot like it is 2005 all over.