John Hussman: Risk/Reward Profile in Stocks Could Hardly Be More Negative

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John Hussman expresses deep concern about stocks at current valuation levels in his latest (excellent) piece.  Contrary to what’s reported in mainstream financial media, stocks are actually quite expensive by all historical standards he says. Present market risks involve a confluence of factors. First, valuations remain unusually rich. Though prospective returns are better than at […]

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Technical extraordinaire Carl Swenlin puts on his fundamental hat here, as he gauges the current valuation of the S&P 500 at large.  This seemingly cut-and-dry debate always seems to draw opinions that are all over the map!  Swenlin, as usual, keeps a level-head in his analysis. A couple of points I found particularly interesting: How […]

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No doubt about it – stocks that pay dividends vastly outperform those that don’t. Check out this “dividend payer” performance chart from Ned Davis research. (Hat tip Dan Ferris from the 12% Letter for the link!) Companies that pay a dividend outperform those that don’t – and all the better if they raise their dividend […]

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Emerging markets appear to be in the process of rolling over – will Brazil soon follow India and China? Though Brazilian shares have rallied in the past week, they still sit 6% lower year-to-date.  You’ll notice Brazil’s iShares ETF (EWZ) has been smacking its head on the 79 level since autumn – to no avail: […]

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When the talking heads on CNBC say that stocks reasonably valued today, I have no clue what they are talking about. At least I’m in good company, as neither does the indomitable John Hussman – he writes: Last week, the S&P 500 Index ascended to a Shiller P/E in excess of 24 (this “cyclically-adjusted P/E” or […]

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Regular contributor Sy Harding takes a look at the amazing levitation the US stock market continues to display – which is especially impressive given the ugly price action we’re seeing in the BRIC’s… —- The US Market’s Remarkable Resilience Being Street Smart Sy Harding February 11, 2011 The U.S. stock market’s continuing strength in the […]

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Nice post and chart here by Mish Shedlock, who peers into the commonly cited “fact” that Corporate America’s balance sheets are stuffed with cash.  That may be the case, but they are MORE stuffed with debt – and total debt surpasses total cash.  You can read Mish’s breakdown here. The biggest joke, I think, is […]

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Quick – what’s the current P/E ratio of the S&P 500? Standing in line today at lunch, waiting for my chicken pita, I was checking Wall Street’s closing numbers on my Android, reading about how stocks haven’t been this cheap since the early 90’s – and thought whhhhhat? The S&P price to earnings multiple is […]

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About Author

Brett

Hi, I’m Brett Owens – and I’m a financial junkie. My “problem” started incollege, when I got a little dose of the stock market – man, was I hooked…in no time, I was reading the Wall Street Journal religously.

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