European Markets are Moderately Attractive
Do lowered earnings growth projections adequately account for increasing headwinds?
Authored by: Celia Dallas
U.S. Equity Valuations: Improving But Not Enough
Using normalized earnings to value U.S. equities suggests they remain overvalued.
The Fallacy of the Fed Model
Why is the Fed Model conveying such different notions about equity valuations compared to other measures?
Endowment Spending in a Bear Market
Three suggestions for institutions whose spending rules now dictate a cut in spending.
Dissecting the U.S. Equity Market
This commentary takes an in-depth look at the U.S. equity market.
European Equity Valuations
Although valuation metrics show mixed results, we remain cautiously optimistic about investing in European and U.K. equities.
The Rise and Fall of the S&P 500
Over the course of the 18.25-year bull market, more than half of the market’s capital appreciation was driven by inflation and the decline in interest rates, and another 20% by multiple expansion, leaving only about 20% of the appreciation attributable to real earnings growth. Between March 31, 2000 and March 31, 2002, inflation continued to…
Three Key Issues for 2002 & Beyond
Three key issues will determine the prospects for the global economy: the likelihood of an impending recovery proving feeble or robust, and the outlook for sustainable longer-term growth.
Mother Goose Revisited
If Goldilocks were the presiding genius of the fabled new economy of the roaring nineties, Humpty Dumpty may be more appropriate to the current situation. All the Fed’s horses and all the President’s men are working to put the U.S. economy back together again, but their conventional tools may prove inadequate.
Market Outlook
Three factors are critical in improving the prospects for the United Kingdom and Europe: a recovery in the U.S. economy, continued strength in U.K. consumer spending, and structural improvements in continental Europe. Although bond and equity markets have priced in expectations for a global economic recovery between the middle to end of 2002 because evidence…