Skip to content

P/E Ratios

Nov 07 2018

Think Halloween Is Behind Us? Beware, Zombie Alert!

  • Nov 7, 2018

“Zombie” companies are being kept alive by low interest rates and generous credit conditions, and the number of them, worldwide, has risen significantly over the past few years.

Nov 07 2018

P/E Crash!!

  • Nov 7, 2018

While this year’s liquidity squeeze has yet to exact the toll we ultimately expect on the U.S. stock mar-ket, it has certainly contributed to a sharp compression in P/E multiples.

Nov 07 2017

Revisiting The Y2K Highs

  • Nov 7, 2017

Bobby Knight thought coaching would be perfect “if it weren’t for those damned games.”

Oct 06 2017

Dialing In On Downside Risks

  • Oct 6, 2017

Question: Your “Estimating The Downside” section shows the S&P 500 would lose 26% if it reverts to its 1957-to-date median valuation level. The downside estimate for the S&P Industrials Index, however, is almost -40%. Why such a huge difference?

Jul 08 2017

Today Versus The Tech Bubble Peak

  • Jul 8, 2017

We’ve generally spoken of the market’s “broad participation” as a good thing. And from a purely technical point of view, it is.

May 05 2017

How To (Almost) Double Your Money In Under Ten Years

  • May 5, 2017

Buying the S&P 500 on one of the worst possible days in history ultimately yielded a total return of +87.4% (+6.8% annualized) through the end of April 2017...darn, sounds like an advert for Vanguard!

Sep 08 2016

A Semi-Annual Checkup!

  • Sep 8, 2016

Call off the mortician, and bring on the pediatrician for the bull market’s 7 1/2-year checkup this month.

Sep 08 2016

Same Ponds, Different Fish?

  • Sep 8, 2016

The impact of atypically-high current valuations has become a challenge for style-box investing. High quality, mature dividend payers have habitually resided in the Value and Blend boxes, but investors have bid up those valuations as they look for alternatives to low bond yields.

Aug 05 2016

No Sector On Sale...

  • Aug 5, 2016

While cap-weighted U.S. indexes remain far below their 2000 valuation highs, in some ways today’s market presents an even more difficult hurdle for value managers.

Jul 08 2016

Low Vol Divergence, Episode 3

  • Jul 8, 2016

The divergence between S&P 500 Low Volatility and High Beta Indexes has emerged for the 3rd time in a year. The 3-month performance spread is even more extreme than it had been on the eve of either the August or December stock market air pockets.

Aug 07 2014

Small Cap Premium Finally Shrinks—But Remains Historically Extreme

  • Aug 7, 2014

July’s Russell 2000 -6% rout finally deflated some of the Small Cap valuation premium we’ve been grousing about in recent years.

Jul 08 2014

Small Cap Valuation Check

  • Jul 8, 2014

Small Caps have staged a nice rebound in the last several weeks. On July 3rd, the Russell 2000 rose to within a fraction of an index point of its March 4th all-time high. But on a relative strength basis, the bounce has been pretty muted.