When Is A Stock Overvalued?
How can we see if a stock is overvalued? It doesn’t need to be complex and investors can do a great job by tracking the evolution of a stock’s Price To Earnings ratio (for profitable companies) or Enterprise Value To Sales ratio (for growing companies).
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High Valuations, Little Stimulus. Time For A Pullback?
Due to high valuations and less supportive Federal Reserve policies, Jim Paulsen of The Leuthold Group forecasts a 10% to 15% fall next year. However, due to ongoing solid GDP and profit growth, he anticipates a large market setback to be temporary.
Buy The Dip Or Wait?
It may be tempting to buy stocks when these start falling. Investors may feel that a stock pulling back represents a “once in a year” opportunity. However, we believe that investors should be very cautious about this strategy.
Sovereign Pivot
The conventional framing of global economic power tends to focus on trade balances and manufacturing output. This perspective misses a more consequential asymmetry.
Structural Divergence in Global Creditor Nations
A significant shift occurred in global capital markets: Germany surpassed Japan as the world’s largest net creditor nation.