The Pope has inaugurated a new holy year of mercy by opening the splendid doors of a Vatican chapel. He intoned (but not in Hebrew) the words of Psalm 118: Open for me the Gates of Righteousness. In Hebrew the same text is part of the Yom Kippur liturgy. Because of the way the Hebrew…
Overvalued No Matter How You Look Currently, stocks are extremely overvalued by multiple methods. The first way is by looking at Cyclically Adjusted P/E Ratios commonly known as CAPE, Shiller P/E, or P/E 10 ratio. The second is by looking at median P/E and P/S (Price to Sales) measures We will look at both, but here’s a…
We tend to think of economic crises as relatively rare, isolated events like the Great Depression or the 2008 meltdown. But in truth, they are pretty common. They’ve been happening for thousands of years, and few generations escape them. This fascinating video by HowMuch graphically illustrates the history of economic crises. Video Length: 00:06:24 The…
Asia managed a mixed session torn between the falling oil price and the Dow’s rally. Europe was very sure what should happen when oil was hit again this morning. When WTI and Brent fell another 1.5% on the back of an earlier report from the IEA (International Energy Agency) that they are forecasting a slack in…
Over the past week, my market health indicators mostly fell, but none of them fell enough to change any portfolio allocations. The market trend category is the closest to going negative, but still hanging on. One thing of note this week is that fear is starting to enter the market. Two of the four components…
Over the past week, my market health indicators mostly fell, but none of them fell enough to change any portfolio allocations. The market trend category is the closest to going negative, but still hanging on. One thing of note this week is that fear is starting to enter the market. Two of the four components…
You can now get Walmart (NYSE:WMT) at a Walmart price, and its a bargain, like I’ve said before. Consider this. The market cap of $191 billion is less than 40% of the current year’s estimated sales of $500 billion. Compare the current Price/Earnings multiple, at 12.7, with nearly 17 at its main competitor, Target (NYSE:TGT) or 20 at another primary…
The Wyden-Grassley report has ruffled some feathers in the pharmaceutical industry. The 18 month investigation determined that Gilead GILD priced Sovaldi ($1,000 pill per day) to maximize revenue; R&D costs or the multi-billion acquisition of Pharmasset may not have factored into the price. The takeaway from the report is clear — there could be justification…
We’ve gotten it into our heads that Fed Chair Janet Yellen is on her way down from the mountain top carrying stone tablets etched with the details of a rate hike. We don’t know exactly what form it will take, but let there be no doubt – the financial gods have spoken, so a rate…
The Fed is widely expected to raise rates next week. I will show the entire economic calendar in tonight’s precious metals commentary. And next Friday is the December ‘quad witching’ option expiration. So what is this really, fear of the Fed, or some antics de luxe ahead of the option expiry? I’d give it even money at…
