June 9, 2011 Special Update
Note from Doug: I’ve updated this commentary to reflect the new Q Ratio data computed from the Z.1 Flow of Funds quarterly update released today. Here is an overview and summary of the four market valuation indicator…
June 9, 2011 Special Update
Note from Doug: I’ve updated this commentary to reflect the new Q Ratio data computed from the Z.1 Flow of Funds quarterly update released today. Here is an overview and summary of the four market valuation indicator…
June 9, 2011 Special Update
Note from Doug: The latest Z.1 Flow of Funds, data through Q1, was released today at 12 PM EST. The balance sheet data on which Q is calculated have undergone very substantial revisions. I’ll post a separate commentar…
June 2, 2011
Here is an overview and summary of the four market valuation indicators I regularly follow: The Crestmont Research P/E Ratio (more) The cyclical P/E ratio using the trailing 10-year earnings as the divisor (more) The Q Ratio — t…
June 1, 2011 Monthly Update
The Q Ratio is a popular method of estimating the fair value of the stock market developed by Nobel Laureate James Tobin. It’s a fairly simple concept, but laborious to calculate. The Q Ratio is the total price of the…
June 1, 2011 Monthly Update
Here’s the latest update of my preferred market valuation method using the most recent Standard & Poor’s “as reported” earnings and earnings estimates and the index monthly averages of daily closes for March 2011, whi…
By guest contributor Ed Easterling
May 17, 2011
There is a skeptical gremlin perched on the left shoulder for many investors. He often sneers at notions of “cycles” and other presumably predictable periods. When the word “secular” accompanies t…
By guest contributors Adam Butler and Mike Philbrick
May 10, 2011
Note from dshort: Adam Butler and Mike Philbrick are Directors, Wealth Management and Portfolio Managers with Butler|Philbrick & Associates at Richardson GMP in Toronto, Canada. We…
May 5, 2011
The recent series of articles by guest contributor Ed Easterling triggered a great deal of interest in the Crestmont P/E ratio. Accordingly I am adding the Crestmont data to my monthly market valuation posts. The articles were written s…
May 2, 2011
Here is an combined perspective on three market valuation indicators I routinely follow: The relationship of the S&P Composite to a regression trendline (more) The cyclical P/E ratio using the trailing 10-year earnings as the divisor (mo…
May 2, 2011 Monthly Update
Here’s the latest update of my preferred market valuation method using the most recent Standard & Poor’s “as reported” earnings and earnings estimates and the index monthly averages of daily closes for March 2011, which…