News: 2013-11-22

Markets
Stock Funds Lure Most Cash in 13 Years as Investors Chase Rally - Businessweek
Warren Buffett's Favorite Market Indicator Shows the Stock Market Is Overvalued (^DJI, ^GSPC, TWTR)
"Corporate profit margins are at all-time highs, and earnings are not growing. The S&P 500 is rising on earnings-multiple expansion, rather than earnings growth, and it looks overvalued.
The cyclically adjusted P/E ratio (a.k.a. the Shiller P/E) is at 25 -- about 50% above its historical average of 16.5.Respected investors including Jeremy Grantham, Wally Weitz, Donald Yacktman, Steven Romick, and Seth Klarman are building large cash positions. This indicates that they do not see opportunity in the marketplace currently and would rather be in cash to take advantage of future opportunities.All the w...


As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.

Click here to join. Your readership is greatly appreciated!

Registered users can log in by entering details here or below.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More