Tag: Stock

Is the Stock Market Cheap? dshort – Advisor Perspectives #business #phone #systems


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Here is a new update of a popular market valuation method using the most recent Standard Poor’s “as reported” earnings and earnings estimates and the index monthly average of daily closes for the past month. For the earnings, see the table below created from Standard Poor’s latest earnings spreadsheet.

The Valuation Thesis

A standard way to investigate market valuation is to study the historic Price-to-Earnings (P/E) ratio using reported earnings for the trailing twelve months (TTM). Proponents of this approach ignore forward estimates because they are often based on wishful thinking, erroneous assumptions, and analyst bias.

The “price” part of the P/E calculation is available in real time on TV and the Internet. The “earnings” part, however, is more difficult to find. The authoritative source is the Standard Poor’s website, where the latest numbers are posted on the earnings page .

The table here shows the TTM earnings based on “as reported” earnings and a combination of “as reported” earnings and Standard Poor’s estimates for “as reported” earnings for the next few quarters. The values for the months between are linear interpolations from the quarterly numbers.

The average P/E ratio since the 1870’s has been about 16.7. But the disconnect between price and TTM earnings during much of 2009 was so extreme that the P/E ratio was in triple digits as high as the 120s in the Spring of 2009. In 1999, a few months before the top of the Tech Bubble, the conventional P/E ratio hit 34. It peaked close to 47 two years after the market topped out.

As these examples illustrate, in times of critical importance, the conventional P/E ratio often lags the index to the point of being useless as a value indicator. “Why the lag?” you may wonder. “How can the P/E be at a record high after the price has fallen so far?” The explanation is simple. Earnings fell faster than price. In fact, the negative earnings of 2008 Q4 (-$23.25) is something that has never happened before in the history of the S P 500.

Let’s look at a chart to illustrate the unsuitability of the TTM P/E as a consistent indicator of market valuation.

Legendary economist and value investor Benjamin Graham noticed the same bizarre P/E behavior during the Roaring Twenties and subsequent market crash. Graham collaborated with David Dodd to devise a more accurate way to calculate the market’s value, which they discussed in their 1934 classic book, Security Analysis. They attributed the illogical P/E ratios to temporary and sometimes extreme fluctuations in the business cycle. Their solution was to divide the price by a multi-year average of earnings and suggested 5, 7 or 10-years. In recent years, Yale professor and Nobel laureate Robert Shiller, the author of Irrational Exuberance. has popularized the concept to a wider audience of investors and has selected the 10-year average of “real” (inflation-adjusted) earnings as the denominator. Shiller refers to this ratio as the Cyclically Adjusted Price Earnings Ratio, abbreviated as CAPE, or the more precise P/E10, which is our preferred abbreviation.

The Correlation between the S P Composite and its P/E10

As the chart below illustrates, the P/E10 closely tracks the real (inflation-adjusted) price of the S P Composite. In fact, the detrended correlation between the two since 1881, the year when the first decade of average earnings is available, is 0.9977. (Note: A perfect positive correlation would be 1 and the absence of correlation would be 0).

The historic P/E10 average is 16.7. After dropping to 13.3 in March 2009, the ratio rebounded to an interim high of 23.5 in February of 2011 and then hovered in the 20-to-21 range. It began rising again in late 2013 and hit a new interim high of 27.0 in February of 2015. It has now dropped below that high.

Of course, the historic P/E10 has never flat-lined on the average. On the contrary, over the long haul it swings dramatically between the over- and under-valued ranges. If we look at the major peaks and troughs in the P/E10, we see that the high during the Tech Bubble was the all-time high above 44 in December 1999. The 1929 high of 32.6 comes in at a distant second. The secular bottoms in 1921, 1932, 1942 and 1982 saw P/E10 ratios in the single digits.

The chart also includes a regression trendline through the P/E10 ratio for the edification of anyone who believes the price-earnings ratio has naturally tended higher over time as markets evolve. The latest ratio is 41% above trend, up from 39% above last month.

Where does the current valuation put us?

For a more precise view of how today’s P/E10 relates to the past, our chart includes horizontal bands to divide the monthly valuations into quintiles five groups, each with 20% of the total. Ratios in the top 20% suggest a highly overvalued market, the bottom 20% a highly undervalued market. What can we learn from this analysis? The Financial Crisis of 2008 triggered an accelerated decline toward value territory, with the ratio dropping to the upper second quintile (from the bottom) in March 2009. The price rebound since the 2009 low pushed the ratio back into the top quintile, hovered around that boundary and has now moved higher.

A cautionary observation is that when the P/E10 has fallen from the top to the second quintile, it has eventually declined to the lowest quintile and bottomed in single digits. Based on the latest 10-year earnings average, to reach a P/E10 in the high single digits would require an S P 500 price decline well below 1000. Of course, a happier alternative would be for corporate earnings to continue their strong and prolonged surge. If the 2009 trough was not a P/E10 bottom, when might we see it occur? These secular declines have ranged in length from over 19 years to as few as three.

We can also use a percentile analysis to put today’s market valuation in the historical context. As the chart below illustrates, latest P/E10 ratio is approximately at the 95th percentile of this series.

Deviation from the Mean

Here are a pair of charts illustrating the historic P/E 10 ratio from its mean (average) and geometric mean with callouts for peaks and troughs along with the latest values.

Relative to the mean, the market remains quite expensive, with the ratio approximately 62% above its arithmetic mean and 75% above its geometric mean.

The Prevailing Question.

Was March 2009 the beginning of a secular bull market? Perhaps, and certainly the new all-time highs repeatedly set over the past several months are conspicuous tick marks for the optimists. But the history of market valuations suggests a cautious perspective.

Additional Notes

What Are the Impacts of Low Interest Rates and Inflation on Market Valuations?

For more on this topic, see our monthly update:

Wouldn’t Valuations Be Much Lower If We Exclude the Financial Crisis Earnings Crash?

This is an often asked question, the assumption being that the unprecedented negative earnings of the Financial Crisis skewed the P/E10 substantially higher than would otherwise have been the case. While that may seem a reasonable assumption, a simple experiment shows that the earnings plunge did not dramatically impact the ratio. Let’s assume that the December 2007 TTM earnings of 66.18 remained constant for the next 29 months, totally eliminate the collapse in earnings of the Great Recession. What impact does this have on the P/E 10? The mean (average) only drops from 16.6 to 16.5. The lower bound of the top quintile drops from 21.2 to 20.8.

Where Can I Find the Latest Earnings Data for the S P 500?

Follow these steps to access the Standard Poor’s earnings spreadsheet:

  1. Go to the S P 500 page on the S P Dow Jones Indices website. Here is a: direct link to the page.
  2. Click the “ADDITIONAL INFO” button in the left column.
  3. Click the Index Earnings link to download the Excel file. Once you’ve downloaded the spreadsheet, scroll down to the “As Reported Earnings” data in column L.

Exactly What Is the S P Composite index?

For readers unfamiliar with the index, see this article for some background information.


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Market Overview – Stock Market Research #small #business #saturday


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Market Overview

The performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be lower or higher than the performance quoted. Investment return and principal value of an investment will fluctuate and when redeemed, the investment may be worth more or less than their original cost.

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The performance data quoted represents past performance. Past performance does not guarantee future results. The research, tools and information provided will not include every security available to the public. Although the sources of the research tools provided on this website are believed to be reliable, Scottrade makes no warranty with respect to the contents, accuracy, completeness, timeliness, suitability or reliability of the information. Information on this website is for informational use only and should not be considered investment advice or recommendation to invest.

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Scottrade does not provide tax advice. The material provided is for informational purposes only. Please consult your tax or legal advisor for questions concerning your personal tax or financial situation.

Any specific securities, or types of securities, used as examples are for demonstration purposes only. None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security.

Investors should consider the investment objectives, charges, expense, and unique risk profile of an exchange-traded fund (ETF) before investing. A prospectus contains this and other information about the fund and may be obtained online or by contacting Scottrade. The prospectus should be read carefully before investing.

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Investors should consider the investment objectives, risks, charges and expenses of a mutual fund before investing. A prospectus contains this and other information about the fund and may be obtained online or by contacting Scottrade. The prospectus should be read carefully before investing. No-transaction-fee (NTF) funds are subject to the terms and conditions of the NTF funds program. Scottrade is compensated by the funds participating in the NTF program through recordkeeping, shareholder or SEC 12b-1 fees.

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Options involve risk and are not suitable for all investors. Detailed information on our policies and the risks associated with options can be found in the Scottrade ® Options Application and Agreement. Brokerage Account Agreement. by downloading the Characteristics and Risks of Standardized Options and Supplements (PDF) from The Options Clearing Corporation, or by requesting a copy by contacting Scottrade. Supporting documentation for any claims will be supplied upon request. Consult with your tax advisor for information on how taxes may affect the outcome of these strategies. Keep in mind, profit will be reduced or loss worsened, as applicable, by the deduction of commissions and fees.

Market volatility, volume and system availability may impact account access and trade execution.

Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss, in a down market.

Scottrade®, the Scottrade® logo and all other trademarks, whether registered or unregistered, are the property of Scottrade, Inc. and its affiliates.

Hyperlinks to third-party websites contain information that may be of interest or use to the reader. Third-party websites, research and tools are from sources deemed reliable. Scottrade does not guarantee accuracy or completeness of the information and makes no assurances with respect to results to be obtained from their use.

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Online Stock Trading and Stock Trading Tools #how #to #finance #a #business


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Scottrade Client Website for Online Trading

Scottrade received the highest numerical score in the J. D. Power 2016 Self-Directed Investor Satisfaction Study, based on 4,242 responses measuring 13 firms and the experiences and perceptions of investors who use self-directed investment firms, surveyed in January 2016. Your experiences may vary. Visit jdpower.com .

Authorized account login and access indicates customer’s consent to the Brokerage Account Agreement. Such consent is effective at all times when using this site.

Unauthorized access is prohibited.

Scottrade, Inc. and Scottrade Bank are separate but affiliated companies and are wholly owned subsidiaries of Scottrade Financial Services, Inc. Brokerage products and services offered by Scottrade, Inc. – Member FINRA and SIPC. Deposit products and services offered by Scottrade Bank, Member FDIC .

Brokerage products are not insured by the FDIC — are not deposits or other obligations of the bank and are not guaranteed by the bank — are subject to investment risks, including possible loss of the principal invested.

All investing involves risk. The value of your investment may fluctuate over time, and you may gain or lose money.

Online market and limit stock trades are just $7 for stocks priced $1 and above. Additional charges may apply for stocks priced under $1, mutual fund and option transactions. Detailed information on our fees can be found in the Explanation of Fees (PDF).

You must have $500 in equity in an Individual, Joint, Trust, IRA, Roth IRA, or SEP IRA account with Scottrade to be eligible for a Scottrade Bank® account. In this instance, equity is defined as Total Brokerage Account Value minus Recent Brokerage Deposits on Hold.

The performance data quoted represents past performance. Past performance does not guarantee future results. The research, tools and information provided will not include every security available to the public. Although the sources of the research tools provided on this website are believed to be reliable, Scottrade makes no warranty with respect to the contents, accuracy, completeness, timeliness, suitability or reliability of the information. Information on this website is for informational use only and should not be considered investment advice or recommendation to invest.

Scottrade does not charge setup, inactivity or annual maintenance fees. Applicable transaction fees still apply.

Scottrade does not provide tax advice. The material provided is for informational purposes only. Please consult your tax or legal advisor for questions concerning your personal tax or financial situation.

Any specific securities, or types of securities, used as examples are for demonstration purposes only. None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security.

Investors should consider the investment objectives, charges, expense, and unique risk profile of an exchange-traded fund (ETF) before investing. A prospectus contains this and other information about the fund and may be obtained online or by contacting Scottrade. The prospectus should be read carefully before investing.

Leveraged and inverse ETFs may not be suitable for all investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies. These funds’ performance will likely be significantly different than their benchmark over periods of more than one day, and their performance over time may in fact trend opposite of their benchmark. Investors should monitor these holdings, consistent with their strategies, as frequently as daily.

Investors should consider the investment objectives, risks, charges and expenses of a mutual fund before investing. A prospectus contains this and other information about the fund and may be obtained online or by contacting Scottrade. The prospectus should be read carefully before investing. No-transaction-fee (NTF) funds are subject to the terms and conditions of the NTF funds program. Scottrade is compensated by the funds participating in the NTF program through recordkeeping, shareholder or SEC 12b-1 fees.

Margin trading involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. The Margin Disclosure Statement and Agreement (PDF) is available for download, or it is available at one of our branch offices. It contains information on our lending policies, interest charges, and the risks associated with margin accounts.

Options involve risk and are not suitable for all investors. Detailed information on our policies and the risks associated with options can be found in the Scottrade ® Options Application and Agreement. Brokerage Account Agreement. by downloading the Characteristics and Risks of Standardized Options and Supplements (PDF) from The Options Clearing Corporation, or by requesting a copy by contacting Scottrade. Supporting documentation for any claims will be supplied upon request. Consult with your tax advisor for information on how taxes may affect the outcome of these strategies. Keep in mind, profit will be reduced or loss worsened, as applicable, by the deduction of commissions and fees.

Market volatility, volume and system availability may impact account access and trade execution.

Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss, in a down market.

Scottrade®, the Scottrade® logo and all other trademarks, whether registered or unregistered, are the property of Scottrade, Inc. and its affiliates.

Hyperlinks to third-party websites contain information that may be of interest or use to the reader. Third-party websites, research and tools are from sources deemed reliable. Scottrade does not guarantee accuracy or completeness of the information and makes no assurances with respect to results to be obtained from their use.

© 2016 Scottrade, Inc. All rights reserved.


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Stock Market Websites #catchy #business #names


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Finance Websites

Here are some popular Finance Websites to help you get the information you need and advance your trading even further.

List of Finance Websites:

Quotes, news, tools

  • Google Finance user friendly charts, screeners, news. This is powered by Google, and allows exporting of some historical data. They even have an API if you want to integrate it with stock picking software
  • Yahoo Finance user friendly charts, screeners, news, options, bonds. Yahoo! Finance is a source we use often for some of the latest-breaking investment news stories
  • Barchart technical charts, news, futures, options, Forex
  • Stockwatch quotes and news
  • Nasdaq quotes, news, analyst ratings, lots of information
  • TheGlobeandMail quotes, charts, ratings, news
  • MarketWatch quotes, charts, news, personal finance
  • Bloomberg quotes, news
  • Reuters quotes, news
  • Ino quotes, news,futures
  • Zacks screeners, news, earnings
  • The Street quotes, cramer, news
  • Wall Street Journal quotes, news

News and Blogs

  • Seeking Alpha Contributors from around the world post news, share investing advice, and more. There are popular stock games on HowTheMarketWorks and Virtual-Stock-Exchange run by Seeking Alpha members
  • Zero Hedge
  • Green Faucet
  • Forbes

Futures and Commodities

Brokerages

Misc

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Stock Market Today: Market Bliss as Crude Oil Craters #unsecured #business #loan


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Stock Market Today: Market Bliss as Crude Oil Craters

The session was quiet, but there s a storm brewing

Aug 1, 2016, 5:43 pm EDT | By Anthony Mirhaydari. InvestorPlace Market Strategist

U.S. equities mostly moved lower on Monday amid relatively quiet trading. The super-tight trading range that s followed the historic post-Brexit rebound moved into its fourth week as volatility is smashed lower.

But this apparent calm belies the accelerating selloff underway in crude oil, which is down nearly 23% from its high after falling below the $40-a-barrel benchmark for the first time since April. You wouldn t know it by looking at the sideways skid in large-cap stocks, but oil has entered a new bear market driven by a return of oversupply worries.

In the end, the Dow Jones Industrial Average lost 0.2%, the S P 500 Index lost 0.1%, the Nasdaq Composite gained 0.4% and the Russell 2000 ended the day 0.1% lower. Further, Treasury bonds were weaker, the dollar was higher, gold gained 0.2% and oil fell 3.7%.

Energy stocks led the decliners with a 3.3% loss followed by telecom and materials. Technology stocks put in a strong showing, with FANG icon Amazon.com, Inc. (NASDAQ: AMZN ) up 1.2%. SolarCity Corp (NASDAQ: SCTY ) fell 7.4% as it reached a final deal to be acquired by Tesla Motors Inc (NASDAQ: TSLA ) in an all-stock deal with around $2.6 billion. Separately, Trina Solar Limited (ADR) (NYSE: TSL ) gained 25.2% after agreeing to be taken private in an all-cash deal worth $1.1 billion.

The decline in crude was encouraged by a Reuters report that OPEC output likely increased to a record in July and a Bloomberg article that hedge fund bets again energy have increased by the most since at least 2006. Data from Yardeni Research also shows a recent bounce in U.S. drilling rig counts.

As a reminder, recent concern has focused on swollen gasoline inventories, which have pinched refiner margins and slowed cracking activity, which in turn threatens to worsen the glut of crude.

The weakness in energy stocks appears to just be getting started as shares of stocks like Exxon Mobil Corporation (NYSE: XOM ) has badly disconnected from crude oil during the February-July rebound driven by hopes of an OPEC-Russia oil supply freeze deal.

XOM fell through last week s lows in what looks like a looming test of its 200-day moving average not touched since February. The company reported a top- and bottom-line miss last week, with earnings of 41 cents per share missing expectations for 64 cents on a 22% drop in revenue to $57.7 billion.

Valuations are ridiculous: Consider that XOM s current trailing twelve-month price-to-earnings ratio is nearly double what is considered fair value.

The decline boosted the Aug $94 XOM puts recommended to Edge Pro subscribers to a gain of 314% since recommended on July 21.

The oversupply is only going to get worse. Libya announced oil ports closed due to civil unrest are to resume exports, Iran is aggressively ramping output now that sanctions have been lifted, Saudi Arabia just cut the price of oil to Asian markets, and Russia s energy minister said he did not see a coordinated action on curtailing oil output with OPEC.

Also weighing on sentiment were hawkish comments from NY Fed President William Dudley that the futures market was too complacent about the risk of more than one quarter-point interest rate hike by the end of 2017. He reiterated that a hike was possible ahead of the presidential election in November.

All of this threatens the quietest few weeks in the stock market in decades. Yet even within this relative calm, there is evidence of weakness: After a record of nine straight up days the Dow is now down six days straight. That s the worst result since last August.

Anthony Mirhaydari is founder of theEdgeandEdge Proinvestment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.

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What Happened in the Stock Market Today – The Motley Fool #business #yellow #pages


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What Happened in the Stock Market Today

Source: Yahoo Finance.

Job growth slowed down last month, according to the latest official economic data. Employers added 151,000 jobs in August, below expectations and down significantly from the 275,000 jobs added in July. Still, the longer-term trend is stable. After accounting for revisions, the job market has now grown by an average of 232,000 per month over the past three months. That number will likely figure prominently in the Federal Reserve’s debate over whether or not to raise interest rates after its next meeting, which concludes on September 21 .

Meanwhile, earnings news sent a few stocks sharply lower even as broader indexes rose. These include Verifone (NYSE:PAY ) and Lululemon (NASDAQ:LULU ). which both posted double-digit losses on Friday.

Verifone’s revenue stumbles

Verifone was one of the market’s biggest losers, slumping 16% following disappointing quarterly results. The payments solutions specialist’s sales turned surprisingly negative, with revenue slipping 3% to $493 million. In contrast, CEO Paul Galant and his executive team had projected $515 million of sales. “Q3 was a challenging quarter for Verifone on revenues,” Galant said in a press release on Friday. The good news is that profitability held up, and cost cuts allowed the company to hit its earnings target. Verifone managed a 7% boost in EPS.

Image source: Getty Images.

However, there appear to be persistent challenges surrounding the rollout of the EMV payment platform that handles chip-enabled credit cards. These will continue into the current quarter, Verifone warned, and will be a drag on growth. As a result, full-year revenue will stop at $2 billion, rather than the $2.1 billion they forecast in late May. Projected earnings got a bigger downgrade and will now be roughly $1.65 per share, compared to the prior $1.85 outlook.

Executives are confident that the issues that tripped up sales growth come from a mix of “difficult but temporary local market” issues and a slower than expected introduction of the EMV system. Investors who agree with that assessment might be tempted to take a closer look at this stock, which is down almost 50% in the last twelve months.

Lululemon’s profitability growth

Lululemon’s stock took a step back from all-time highs, dropping 11% after announcing its quarterly earnings results. The retailer had plenty of good news for investors in this report. Comparable store sales growth was 3% — on par with the prior quarter’s result and right within management’s guidance. While it could have been higher, that’s an impressive pace given the weak selling environment for most apparel retailers these days .

Image source: Lululemon.

The company didn’t have to resort to price cuts to keep customer traffic humming along, either. Gross profit margin improved by two percentage points to reach 49% of sales. “The second quarter demonstrated strong results as we delivered sales and EPS at the high-end of our guidance and saw an important inflection in our gross margin,” CEO Laurent Potdevin said in a press release.

Lululemon raised its sales and profit outlook for the rest of the year, but perhaps not by as much as investors had hoped, given the run-up in the stock lately. Shareholders may have been holding out for stronger growth, but with profitably finally climbing after four years of declines, and with inventories down from the prior year, the company is in good shape headed into the key holiday shopping season.

Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Lululemon Athletica. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .


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Stock market strength is about the equity risk premium #business #templates


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This stock market rally isn’t like the others

Wikimedia Commons

The rally in stocks to all-time highs has little to do with earnings – the most important driver of stock prices – according to Deutsche Bank.

According to Dominic Konstam and team, writing in a note Friday, the rally is about the declining equity risk premium, which is simply the excess return the stock market provides over a risk-free rate like bond returns.

The premium jumped after stocks plunged in the financial crisis, with investors demanding as much as 7% more from choosing stocks over bonds. It has now fallen closer to its historical norm of 2% as bond yields also fell, implying that the return investors require to be compensated for their risky investments in stocks has fallen.

The sovereign bond yields in many developed countries are at or near record lows. Yields on benchmark bonds in Germany and Japan plunged deeper into negative territory after the rush to government-debt markets sparked by the UK’s decision to leave the European Union.

As nominal yields have fallen, investors have rotated into higher-yielding assets, Konstam said.

“The current cycle stands out in that earnings have played almost no role in the SPX rally. In fact, earnings were a slight drag on equities and were only offset by an aggressive multiple expansion. More than 90 percent of the rally was attributed to a collapse in equity risk premium. In sharp contrast, the equity gains in the 1980s and 2000s were all about earnings growth, and in 1990s earnings still accounted for more than half of the rally.”

The equity risk premium is still some 2% higher than its historical average over the last 30 years – so it could fall further. This gives the S P 500 room to rise another 200 points, Deutsche Bank estimates.

But earnings and expectations for them remain the biggest driver of stock prices. And because the second-quarter earnings season could mark the fourth straight decline in year-over-year S P 500 earnings, that’s a near-term risk to the rally, according to Deutsche Bank.

SEE ALSO: The most important mover of stock prices is not the one driving this rally to all-time highs


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Stock Market Updates #insurance #for #business


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Stock Market Updates

It is with some discomfort that I am always pointing out potential tops in the U.S. stock market indexes. But, I must call them as I read them. The S P daily chart has made ZERO upward progress in 18 months. A possible complex H S top formation is under construction. Also note the appearance of a 7-week H S top pattern. I am willing to short this smaller H S pattern if given a well-defined risk point. I will give up on a bearish interpretation of the S Ps if a new high is made – but this does not mean I would have any interest in being long in new high territory.

The Nasdaq is tracing out a possible broadening top, although as I have pointed out in recent updates, the rally from the Feb 2016 low has exceeded the normal construction of a true broadening top. Outside of the Nifty (India), the Dow Utilities (dividend play) and the Japan Mothers Index, I have a hard time finding a futures market index I am willing to own.

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Definition of Stock Market – The Economic Times #at #home #business #ideas


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Definition of ‘Stock Market’

Definition: It is a place where shares of pubic listed companies are traded. The primary market is where companies float shares to the general public in an initial public offering (IPO) to raise capital.

Description: Once new securities have been sold in the primary market, they are traded in the secondary market—where one investor buys shares from another investor at the prevailing market price or at whatever price both the buyer and seller agree upon. The secondary market or the stock exchanges are regulated by the regulatory authority. In India, the secondary and primary markets are governed by the Security and Exchange Board of India (SEBI).

A stock exchange facilitates stock brokers to trade company stocks and other securities. A stock may be bought or sold only if it is listed on an exchange. Thus, it is the meeting place of the stock buyers and sellers. India’s premier stock exchanges are the Bombay Stock Exchange and the National Stock Exchange.

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80% Stock Market Crash To Strike in 2016, Economist Warns – The Sovereign Investor

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80% Stock Market Crash To Strike in 2016, Economist Warns

Several noted economists and distinguished investors are warning of a stock market crash.

Jim Rogers, who founded the Quantum Fund with George Soros, went apocalyptic when he said, “A $68 trillion ‘Biblical’ collapse is poised to wipe out millions of Americans.”

Mark Faber, Dr. Doom himself, recently told CNBC that “investors are on the Titanic” and stocks are about to “endure a gut-wrenching drop that would rival the greatest crashes in stock market history.”

And the prophetic economist Andrew Smithers warns, “U.S. stocks are now about 80% overvalued.”

Smithers backs up his prediction using a ratio which proves that the only time in history stocks were this risky was 1929 and 1999. And we all know what happened next. Stocks fell by 89% and 50%, respectively.

Even the Royal Bank of Scotland says the markets are flashing stress alerts akin to the 2008 crisis. They told their clients to Sell Everything because in a crowded hall, the exit doors are small.

Blue chip stocks like Apple, Microsoft, and IBM will plunge.

But there is one distinct warning that should send chills down your spine … that of James Dale Davidson. Davidson is the famed economist who correctly predicted the collapse of 1999 and 2007.

Davidson now warns, “There are three key economic indicators screaming SELL. They don’t imply that a 50% collapse is looming it’s already at our doorstep.”

And if Davidson calls for a 50% market correction, one should pay heed.

Editor s Note: American seniors have been worried about our nation s ability to continue to pay out Social Security. Leaked Reports.

Indeed, his predictions have been so accurate, he’s been invited to shake hands and counsel the likes of former presidents Ronald Reagan and Bill Clinton — and he’s had the good fortune to befriend and convene with George Bush Sr. Steve Forbes, Donald Trump, Margaret Thatcher, Sir Roger Douglas and even Boris Yeltsin.

They know that when Davidson makes a prediction, he backs it up. True to form, in a new controversial video, Davidson uses 20 unquestionable charts to prove his point that a 50% stock market crash is here.

Most alarming of all, is what Davidson says will cause the collapse. It has nothing to do with the China meltdown, Wall Street speculation or even the presidential election. Instead, it is linked back to a little-known economic “curse” that our Founding Fathers warned our elected officials about … a curse that was recently triggered.

And although our future may seem bleak, as Davidson says, “There is no need to fall victim to the future. If you are on the right side of what’s ahead, you could seize opportunities that come along once, maybe twice, in a lifetime.”

Perhaps most importantly, in this new video presentation, Davidson reveals what he and his family are doing to prepare right now. (It’s unconventional and even controversial, but proven to work.)

While Davidson intended the video for a private audience only, original viewers leaked it out and now thousands view this video every day.

One anonymous viewer wrote: “Davidson uses clear evidence that spells out the looming collapse, and he does it in a simple language that anyone can understand.” (Indeed, Davidson uses a sandcastle, a $5 bill, and straightforward analogies to prove his points.)

With his permission, I reposted the video on a private website. Click here to watch it now


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