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.
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?
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?
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) | 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.
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...
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…