Market Watch (July 1)
“So far, high valuations haven’t dimmed investors’ enthusiasm for stocks,” but there are concerns. The forward price-to-earnings ratio of the S&P500 “currently stands at 21.1, above the 90th percentile from the past 40 years. The S&P 500 is even more richly valued on a trailing 12-month basis. In the past, when valuations have been this stretched, the median one-year forward return for the index has been -4%.”
Tags: 4%, Concerns, Dimmed, Enthusiasm, Forward P/E, Forward return, High, Investors, Rich, S&P 500, Stocks, Stretched, Valuations
Automotive News (February 8)
“Toyota is too polite to gloat, but the world’s biggest carmaker may be close to a told-you-so moment when it comes to waning enthusiasm for electric vehicles.”
Tags: Biggest, Carmaker, Electric vehicles, Enthusiasm, Gloat, Polite, Toyota, Waning
Wall Street Journal (September 24)
“America’s billionaires love Japanese stocks. Why don’t the Japanese?” Despite enthusiasm from overseas, “there are few signs its estimated 125 million residents share in the excitement. Burned by dismal returns since the bursting of Japan’s asset bubble in the late 1980s and early 1990s, generations of families here have stashed most of their money in low-yielding savings accounts rather than trying to increase their wealth through the stock market.”
Tags: 1980s, 1990s, Asset bubble, Billionaires, Dismal returns, Enthusiasm, Excitement, Japan, Low-yielding, Money, Overseas, Residents, Savings accounts, Stashed, Stock market, Stocks, U.S.
The Economist (July 18)
“There has always been an element of financial engineering about buy-backs. Can it really be good news if a firm feels it has nothing better to do with its money? An enthusiasm for buy-backs creates the sense that executives are more interested in short-term share-price performance than in the company’s long-term health.” According to some estimates, the number of available shares in U.S. stock markets has been reduced by approximately 6% since 2009 as a result of buy-backs, but the trend appears to be slowing.
Tags: Buy-backs, Enthusiasm, Executives, Financial engineering, Performance, Share price, Short term, U.S.
Wall Street Journal (December 26, 2013)
“The Nikkei’s strong performance this year hasn’t dented the enthusiasm of international fund managers.” In the first 11 months of 2012 foreign investors brought inflows of 830 billion yen into Japan’s stock market. In 2013, inflows from foreign investors soared to 14.8 trillion during the same period.
Tags: 2012, Enthusiasm, Foreign investors, Fund managers, International, Japan, Nikkei, Performance, Stock market
