Valuation puzzle
Equities are expensive. It’s difficult to argue against this. But does this also mean that markets will fall sharply? Assuming that there are plenty of other factors that could drag […]
Tag Archives: Valuation
Why Eurozone stocks have lagged
Since the low point for the equity markets during the global financial crisis in 2009, Eurozone equities have lagged their US counterparts by an impressive 300%. Why is this? By […]
Recession indicators are overrated for stock returns
Equity investors are always looking for signs of the next recession. Recessions mean higher unemployment, lower spending, lower earnings and ultimately more defaults, all of which are bad news for […]
Rational Exuberance?
Here is a ‘surprise’ for you. The number of news stories stating that irrational exuberance is back on the stock markets is growing rapidly. In addition, irrational exuberance was mentioned […]
Week End Blog – OIL!
This week was all about oil prices. After a price collapse of over 30% since the middle of June, oil lost another 6% as OPEC decided not to cut production […]
Week End Blog – ECB policy, global trade, and rich valuations
This week was dominated by the ECB meeting on Thursday. While the ECB, again, refrained from changing its monetary policy, Draghi did seem to hint at some action in June, […]
Revealing the relationship between EPS growth and equity returns
Valuation-related measures are often lousy instruments for timing the market. But that doesn’t mean they can’t hold interesting information about equity market returns. In the chart below, I have plotted […]
