While there is some cause for cautious optimism on earnings, earnings growth is cyclically stretched and more likely to decrease than continue to rise. Consensus expectations for profit margins and earnings expectations set a high bogey.
Asia beckons western investors, its allure predicated on three compelling attractions: Asia beckons western investors, its allure predicated on three compelling attractions: The continued broadening and deepening of relatively immature capital markets whose development will reflect the expansion of most Asian economies at growth rates substantially faster than those of North America and Europe. Reasonable valuations in…
Despite its unique hedging characteristics, gold remains unsuitable for most investors.
Despite a near six-year run by small-cap and value stocks, the relative opportunity in large cap and growth is somewhat limited.
Normalized P/E ratios that adjust for earnings cyclicality suggest that these markets are quite a bit more expensive than do standard P/E metrics.
While much of the rally has been powered by fundamentals (i.e., rapidly rising earnings), recent returns have been boosted by enormous fund inflows that suggest a bit of frothiness is creeping into the asset class.
Investors continue to pour money into the sector, but high prices and low yields are likely to damp long-term returns.
Product innovation brings new opportunities, but also can significantly alter key performance drivers.
While secular inflation is likely to remain in check, investors should be prepared for potential cyclical inflationary spikes.
U.K. charities that must operate under income-only spending policies should actively monitor and manage the potential biases a high dividend yield strategy may introduce.