From Bloomberg... Investors in U.S. stocks have little reason for concern that the yield on 10-year Treasury notes surpassed 3 percent last week, according to Sam Stovall, CFRA Inc.’s chief investment strategist. In a report Monday, Stovall cited figures on the S&P 500 Index’s performance in months with rising yields during the past 65 years. … Continue reading What 10-year yield matters most for stocks?
Economy and stock market’s fundamentals are strong right now. Year-over-year earnings growth is currently at 20%. It looks like the final year-over-year earnings growth for 2018 will probably be somewhere closer to 15%. The yield curve is still positive (Yield curve is bearish for the market once it becomes inverted). Inflation growth is still muted. … Continue reading Is the Market Stuck?
A few ETFs we're looking to add to portfolios. HACK, CIBR Conceptually I believe cyber security will only become more important. High expense ratios - .64% & .60% Decent returns although a short track record, CIBR came in on 7/7/2015 and HACK on 11/11/2015. The article is over a year old, but why rewrite it, … Continue reading ETF Update
Before the February/ March price decline, stock prices were at a cyclical high with the trailing PE (price/earnings ratio) in the mid-20s. However, based on the estimated earnings for the next 12 months and the S&P 500 Index at 2641 on March 30, the forward PE is around 17X. That ratio is in line with … Continue reading Valuation
The recent headlines and resulting sharp decline in the stock market has created a lot of anxiety in the short-run, but in the long-run markets are driven by fundamentals, primarily corporate earnings and economic growth. The latest data shows that fourth quarter GDP growth was revised up to 2.9% from an estimate of 2.7% and … Continue reading US Economy
“I think the worst mistake you can make in stocks is to … buy or sell based on current headlines. We were buying stocks on Friday and we’ll buy the same stocks today, and we’ll buy them a little cheaper. I never complain about buying things cheaper.” (Warren Buffett on CNBC) As 2017 came to … Continue reading Stock Market 2nd Quarter 2018