Market Remains Overvalued – Thursday, September 7
Here is a summary of the four market valuation indicators we update on a monthly basis. The Crestmont Research P/E Ratio (more) The cyclical P/E ratio using the trailing 10-year earnings as the divisor (more) The Q Ratio, which is the total price of the market divided by its replacement cost (more) The relationship of […]
Banking Stocks Breaking Down, Bad For Stock Markets
Banking stocks in the U.S. are breaking down. The leading indicator for banking stocks, KBE ETF, representing regional banks, is breaking through support. The finance sector, with regional banks in the lead, have been leading stock markets higher since last summer. After 12 months, that trend is coming to an end. Banking stocks are drifting […]
3 Alternative Mutual Funds To Ride Out A Spooky September
Though President Trump’s support toward the extension of the debt limit deadline might have helped stocks book modest gains on Sep 6, a slew of headwinds will continue to spook investors in the month of September. Investors are expected to grapple with issues pertaining to North Korea. The rogue nations’ testing of its deadliest ballistic […]
Amazon.com, Inc. Valuation To Reach $1.6 Trillion Within 8 Years: Analyst
Amazon (AMZN) stock popped during regular trading hours on Thursday after one analyst said his Amazon valuation estimates suggest the company will be worth $1.6 trillion within the next seven to eight years. His note about the cloud and e-commerce giant boosted its stock by more than 1%, raising its market capitalization to nearly $472 […]
Is The Federal Reserve Doing Its Job?
Today let’s talk about the Federal Reserve’s “dual mandate” from Congress. It’s a phrase that gets thrown around a lot, so it’s worth unpacking. The Federal Reserve Act of 1913 established the central bank as we know it today, and, later, Congress also charged (mandated, if you will) the institution to promote maximum employment as […]
Choosy Investors Choose J.M. Smucker And The Dividend Adds Value
Introduction The J.M. Smucker Company (SJM) is a “Dividend Contender” that has increased its dividend for 20 consecutive years. After being overvalued for most of fiscal year 2017 (fiscal year ends in April) the company has since fallen into attractive valuation territory. As a result, the company is available at a low P/E ratio relative to […]
Dollar & Bond Yields Plunge As Cohn Doubts, A Draghi Dud, & Debt Ceiling Denials Dominate
Ugly jobs data (hopefully transitory), uglier energy industry data, and ugliest comments from Trump on throwing away any fiscal restraint with the debt-ceiling bathwater left the dollar down, stocks lower, and bonds and bullion bid… Was this Gary Cohn driven? The Dow (hurt by DIS, GS, and TRV) and Small Caps sank on the day… […]
The Market’s Message… Low For Longer
Preferred stocks have been good investments. Preferred investors are up about as much as stock investors in 2017, but with less risk. A preferred that I’ve been adding to client portfolio is the new Annaly Capital Management 6.95% Series F Fixed/Float (NLY.F) Preferreds aren’t the only income vehicle showing strength. The SPDR Utilities ETF (XLU) […]
Wherefore Art Thou Collateral?
The US Treasury as a result of the government’s bloated response to the Great “Recession” has been forced in notes and bonds to reopen their auctions each and every month. Before then, reopenings were less frequent. They weren’t infrequent, but the Treasury wasn’t just auctioning 10s every month. In 2007, for example, the Department conducted […]
