The Market Valuation Snapshot

In our Hotlist newsletter from last month we took a look at the market’s stretched valuations based on several indicators, and offered insight regarding how actions by the current administration may or may not substantiate them. The market P/E from the beginning of the year, based on trailing 12-month earnings (as of January 9th ,) […]

Market’s Valuation Could Hold Back Trump Bull

During the Trump years, it will be tougher for stocks to see the kind of gains that occurred during the Obama administration,” according to last week’s Wall Street Journal. This is not only because the market had bottomed when Obama took office (and stocks were cheap), but also because of “what happened to corporate profits […]

More Upside in International Stocks

The continued grind of the bull market may not be justified, according to an article in this week’s Investment News. In fact, the article, written by Joe Smith, senior market strategist at CLS Investments, argues the positive data points currently baked into the market—a dip in unemployment, improved corporate sales and earnings, additional consumer spending—don’t necessarily […]

U.S. Stocks Show Increased Global Footprint

The post-election market rally coupled with the strength of the U.S. dollar has increased the share of U.S. stocks as a percentage of the global economy, according to this week’s Wall Street Journal. FactSet data reflect the market capitalization of U.S. stocks at approximately $25 trillion last Friday, a figure that represents 40% of the […]

Are Stocks Cheap or Expensive?

Yale’s Robert Shiller and Penn finance professor Jeremy Siegel have long dueled over whether stocks are cheap or expensive, and Daniel Fisher, of Forbes, reviews the arguments in his recent post. Shiller devised CAPE by measuring the inflation-adjusted earnings per share for the S&P over the trailing 10 years, instead of just the most recent […]

Big Opportunity In Small Stocks?

It’s no secret that the market doesn’t look too cheap right now. In fact, by many measures, it’s overpriced. But the difference in the valuation of small stocks and large stocks right now is striking, Validea CEO John P. Reese writes in his latest column for Forbes.com. “Since the end of 2005, my company has […]

Value Manager Tim Hartch Focuses on High Quality Businesses

Advisor Perspectives highlights the record of value investor Tim Hartch, co-manager of several Brown Brothers Harriman & Co. funds. In the published interview, Hartch explains that his BBH Core Select fund’s “buy-and-own approach, [which] focus[es] on high-quality businesses that are trading at a discount to proprietary intrinsic value estimates.” The goal is “to achieve attractive […]