Posts Tagged ‘S&P 500’

Stock Market ThoughtsThe S&P 500 fell 11% in the quarter, despite the continuing recovery in corporate earnings. The S&P now stands at about 11 times next year’s $93 consensus estimate of net income from operations, and it yields 2.2%. At the Morningstar conference last month, I kept telling skeptical attendees that I was bullish because it is so rare to be able to buy the S&P at three-quarters of its long-term average P/E and with a yield

Profits in the GDP reports have nearly doubled in current dollars, from $860 billion in the last quarter of 1999 to $1,640 billion in the second quarter of 2010.  But the S&P 500 Index has declined from 1469 on 12/31/1999 to 1049 on 8/31/2010.  If profits do not fall then the market is undervalued here.

BERK: Last time individuals were this pessimistic stcoks soared in August, September and October seasonally weak periods and contiuued through the seasonally strong period of November through April. The AAII measure of pessimism peaked on July 8 at 57 percent, the most since March 5, 2009. Bullishness has averaged 29 percent during the past four weeks, compared with 45 percent who were bearish, according to the weekly survey. The last time optimism fell this

Copper ($COPPER) fell with the stock market over the last two weeks. And like the stock market, copper firmed on Wednesday with a support zone around 330-340. The indicator window shows copper with the S&P 500. Notice how closely these two have been tracking over the last eight months. via blogs.stockcharts.com

The Applied Finance Group's (AFG's)Value Expectations (VE) interface is useful in understanding the embedded sales growth a company needs to achieve over the next 5 years to justify its current stock price. Measuring the spread between a company’s embedded sales growth expectation (Implied Sales Growth) and what it has historically delivered (5 year historical median) provides a basis to determine which stocks have relatively low expectations and thus are more likely to outperform.