With the stock market down over 50%, comparisons with how stocks performed during the Great Depression are running rampant. But how much of what we’re hearing about stocks in the 1930s is true? Not as much as you might think, says Mark Hulbert in his column this week in Barron’s. Hulbert went back and carefully [...]
So, as the market continues to go lower, comparisons to the 1929 crash and subsequent bear market of the Great Depression seem to grow ever louder, accompanied by the usual dire predictions of a repeat occurrence. Fortunately, well-reasoned counter-arguments such as the one recently at Running of the Bulls help keep things in perspective (see [...]
In the previous post I made note of Robert Shiller’s P/E10 cyclically adjusted price earnings ratio, a valuation method that smooths out earnings fluctuations to help provide a better picture of the market’s value. Now I’ve found an online stock return predictor calculator that takes P/E10 a step further by using it to predict S&P [...]
When investing in a market like this – where every trading day seems to be just another opportunity for the market to sell off – it pays to keep a long-term perspective. That’s why historical gauges of stock market valuation like Robert J. Shiller’s cyclically adjusted price earnings (CAPE) ratio are so useful. Designed to [...]
As the market continues to fall, those investors who are taking the opportunity to buy are likely to be amply rewarded in the years ahead. That’s the reminder from Larry MacDonald of Canadian Business, who recently offered the following quote from William Bernstein’s book The Four Pillars of Investing: The rewards of fishing in such [...]
