It’s always interesting to read Jeremy Grantham’s latest thoughts on the market. In his just published Q4 2009 letter (embedded below) he reiterates his view that the market, as represented by the S&P 500, is worth only 850 and that any advance from current levels will make it “seriously overpriced.”
Still, he says, the high-quality component [...]
Two astute market observers - Robert Shiller and Jeremy Grantham - recently weighed in with their take on the market after its 60% run-up from the March lows and came to the same conclusion: it’s once again overvalued.
Not massively, mind you, but enough to cause concern. While neither is predicting another crash [...]
With the recent market run up - and with bargain dividend stocks becoming increasingly harder to find - I thought I’d step back for a moment and take a look at the “big picture” - in this case, some possible long-term market scenarios based loosely on Elliott Wave theory. I know I promised in this [...]
A recent “debate” (see video below) between CNBC’s Joe Kernen and money manager Robert Pavlik shows why listening to most money managers can be hazardous to your financial health. Pavlik (along with almost every other money manager Kernen had questioned earlier this year) had not been willing to step up to the plate when the [...]
I’ve mentioned Shiller’s PE10 stock market valuation model in previous posts and how it had recently fallen to levels that historically have coincided with attractive long-term buying opportunities. Now another valuation model - Tobin’s Q - offers another take on the market’s current valuation.
Tobin’s Q is calculated as the combined market value of all [...]
A modified S&P 500 valuation model based on Shiller’s PE10 data agrees with the original model that “stocks are currently at valuation levels that historically have proven to be quite attractive.”
The modified PE10 model, described in an article on Minyanville, takes into account additional variables like real and nominal interest rates, economic volatility, GDP growth, debt [...]
Looking for signs of a bottom? How about when the author of a book championing buy-and-hold dividend investing throws in the towel and sells everything he has in his retirement income portfolio?
Derek Foster - who retired several years ago at age 34 to live off his investments - has done just that. The author [...]
If your investment portfolio is down (and how could it not be if you own stocks?), you might want to check out the financial “comeback calculator” at The New York Times.
This interactive calculator lets you see how long it might take (up to 30 years) before your investments return to their peak levels from before [...]
‘Perma-bear’ Jeremy Grantham has some advice for investors, and it may not be what you might think. Bearish on U.S. stocks since the mid 1990s, the chief strategist at investment management firm GMO now says it’s time to buy.
Not all at once, mind you, as you can never plan on catching the low. But, he [...]
In an interview in Barron’s this week, Judith Saryan, a co-manager of the Eaton Vance Dividend Income Fund (EDIAX: 7.48 +0.40%, yld: N/A%) offered a half dozen of her favorite dividend stocks (see below), based on the cash on their balance sheets, cash flow, and the amount and maturity of debt they had coming due.
Here’s [...]
