Some insights only come by having the right tools. We share five things we have learned about stock index valuations, earnings, currency, and why value investing isn't dead. Topics covered include: How index providers divide the stock universe into large and small, growth and value The difference between the price-to-earnings ratio and earnings yield and which is better How earnings volatility can impact annual earnings growth and what to use to estimate future earnings How … [Read more...]
233 Plus: Conflicting Investment Conditions, P/E Ratios, and a Member Portfolio Review
This week December 15, 2018, we answer a member's question regarding how to reconcile that as market internals deteriorate that market valuations improve. As part of that discussion, we explore business cycle investing. Then we analyze whether a higher or lower price-to-earnings ratio is better given a more expensive P/E could signal faster earnings growth. Finally, we discuss a member's asset allocation dilemma now that he has sold his business. … [Read more...]
MNY048 Plus: Secular Bulls, Cyclical Bears and Cyclically Adjusted P/E Ratios
In this week's Money For the Rest of Us Plus episode, I respond to Plus member feedback and questions on secular bulls including: The baseline conditions of a secular bull market How does the the overvalued U.S. stock market based on cyclically-adjusted P/E ratio (i.e. the Shiller P/E) potentially impact the secular bull market and inevitable cyclical bear market. How do "artificially" low interest rates impact the secular bull and inevitable cyclical bear market What is a worse … [Read more...]
