Tag Archives: SPY

Why Next Week May Be Pivotal: Introducing the ‘JAJO Effect’

While this month’s stock market performance hasn’t been kind to the so-called January effect, this is hardly big news.  Most analysts had already recognized that other months yielded better returns of late. Take Burton Malkiel, author of A Random Walk … Continue reading

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Tracking “Bubble Finance” Risks in a Single Chart

In his 712-page tour de force, The Great Deformation, David Stockman dissects America’s descent into the present era of “bubble finance.” He describes the housing bubble’s early stages as follows: The American savings deficit was transparent after the turn of … Continue reading

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P/E Multiples, Deleveraging and the Big Experiment: Sizing Up the Next Bear Market

We last wrote about stock valuation in August, when we looked at three types of P/E multiples and argued that stocks were more stretched than you would think if you only relied on the simplest measure. Since then, we’ve had … Continue reading

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Breaking Bad News from the Fed’s Z1: Expansions Tend to Explode Near Current Leverage Multiples

In an earlier article, I argued that the S&P 500 (SPY) is more expensive than you might think if you only compared prices to trailing earnings.  I recommended a different approach that suggests today’s valuation is similar to that of … Continue reading

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