MarketThoughts

Collection by Kostas pap

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rates and pe's 2 No Response, Investing, Bubbles, Money, Management

Are Low Rates Responsible for High Valuations

Interest rates are low, so stock valuations should be high. After all, a lower discount rate means that company cash flows are worth more; hence, a higher stock price. And the higher yield offered by equities makes them more attractive than low yielding treasuries, another reason to pay up for stocks.

Risk/Return Trade-Offs (Efficient Frontiers) for Stocks and Bonds Over Various Holding Periods Stocks And Bonds, Standard Deviation

Real Returns Favor Holding Stocks

Stocks are good hedges against inflation, preserve purchasing power, and, over long periods, are less risky than bonds.

10 Things About Economics - Business Insider S&p 500 Index, Yield Curve, Economics, Stock Market, Chart, Marketing, Business, Store

This Market Measure Has A Perfect Track Record For Predicting US Recessions

And recessions predict stock market turns.

Sober Look: The Bank of Japan's QE program diverges sharply from other central banks Bank Of Japan, Central Bank, Sober, Programming, Banks, Ethnic, Computer Programming, Couches, Coding

The Bank of Japan's QE program diverges sharply from other central banks

Many investors seem unaware of just how large Japan's QE program has been relative to other central banks. While the Fed, the ECB, and the...

Seeing the Future, Bond Yields and Bond Returns - WSJ via A Wealth of Common Sense Making Mistakes, The Next, Investors, Bond, Marketing, Common Sense, Economics, Wealth, Finance

How the Markets Tempt Us Into Making Mistakes

Last week I looked at some of the options available to bond investors in a low rate world. I showed that subsequent returns over the next decade tend to track the current interest rate level very clo

Are Traders Already Preparing For a Rate Hike? Periodic Table, Health Care, Hiking, Positivity, Words, Walks, Periodic Table Chart, Periotic Table, Trekking

Are Traders Already Preparing For a Rate Hike?

While it seems investors can’t get enough commentary on the eventual Fed Funds Rate increase, it seems they may already be positioning for Yellen to breath the dreadful word… “tig…

Is a Long-Term Secular Bull Market in Stocks Possible? Map, Marketing, Model, Location Map, Scale Model, Maps, Models, Template

Is a Long-Term Secular Bull Market in Stocks Possible?

Dan Wantrobski at Janney Capital Markets says the long-term correlation between stocks, interest rates, and commodities shows we are now in a secular bull market for stocks. Is this possible given current valuation levels?

The Most Interesting Chart of 2014 (So far) Best Stocks, Stock Market, Bar Chart, Investing, Good Things, Marketing, Bar Graphs

The Most Interesting Chart of 2014 (So far) | Meb Faber Research - Stock Market and Investing Blog

Read, and then re-read this study. Patrick and I chatted about this study when I was in NYC last over beers and wine…my guess was that the moonshots would have had more growth characteristics, which caused people to consistently chase them. Turns out, it looks almost random.

Pension Partners are independent registered investment advisors offering mutual funds, separate accounts and model portfolios. We offer informative advice. Bar Chart, Investing, Management, Marketing, Bar Graphs

Pension Partners - Home

Pension Partners are independent registered investment advisors offering mutual funds, separate accounts and model portfolios. We offer informative advice.

Calafia Beach Pundit: The outlook for interest rates Yield Curve, Interest Rates, Everyone Knows, This Or That Questions, Beach, The Beach, Beaches

The outlook for interest rates

Everyone knows that interest rates are going to rise in the future. So the real question is not whether they will rise, but when and by how ...

GMO 7y Asset Class Real Return Forecasts Stocks And Bonds, Research, Fun Facts, Search, Funny Facts, Science Inquiry

361 Capital Weekly Research Briefing - The Reformed Broker

361 Capital portfolio manager, Blaine Rollins, CFA, previously manager of the Janus Fund, writes a weekly update looking back on major moves, macro-trends and economic data points. The 361 Capital Weekly Research Briefing summarizes the latest market news along with some interesting facts and a touch of humor. 361 Capital is a provider of alternative...

 and eurozone industrial production - Although US is a service oriented economy Piano, Economics, Industrial, Pianos, Industrial Music, Finance

U.S. and Eurozone Industrial Output

This Great Graphic was tweeted by Cigolo and retweeted by Pauly@spz_trader, which is how we saw it. The data is from Thomson Reuters Datastream. It shows US and euro area industrial production since 2002.

Calafia Beach Pundit: to end in October, but the world doesn't October, Learning, World, Beach, The Beach, Studying, Beaches, Teaching, The World

QE3 to end in October, but the world doesn't

With today's release of the June FOMC meeting minutes, we learn that the Fed will almost certainly finish the "tapering" of QE3 in Octobe...

Ghovexx Trading: Marc Faber Asks: Is "Big Government" Thwarting Economic Growth? Science Fiction Authors, Big Government, Economics, Image, Finance

Marc Faber Asks: Is "Big Government" Thwarting Economic Growth?

# Science fiction author Frank Herbert opined that; “All governments suffer a recurring problem, power attracts pathological personalities.” # Friedrich Hayek thought that; “the more the state ‘plans’ the more difficult planning becomes for the individual,” # John Stuart Mill wrote already in Principles of Political Economy (1848); “In all the more advanced communities the great majority of things are worse done by the intervention of government, than the individuals most interested in the…