Here is a summary of the four market valuation indicators we update on a monthly basis. The Crestmont Research P/E Ratio (more) The cyclical P/E ratio using the trailing 10-year earnings as the divisor (more) The Q Ratio, which is the total price of the market divided by its replacement cost (more) The relationship of…
The average American household has roughly 6% less spending power than it did a decade ago. How can that be? Hasn’t the economy been expanding at an appropriate clip since the Great Recession? Haven’t median incomes been rising briskly in conjunction with “full employment?” One of the problems may be attributable to demographic shifts. A…
Never a dull moment with President Dennison. If this were a reality TV show, the ratings would indeed be “tremendous”. So Trump is right about that. And ironically, the reason he’s right about that is precisely because he isn’t right about anything else. That is, there is nothing more entertaining than watching someone who is wrong…
It is official: the price of gold breaks out. This implies that the gold bull market resumes, after a strong 7-year bear market, and it moves into a new bull market in 2018. We quickly review the thoughts from these 3 articles which we wrote in the last couple of months. The Gold And Silver Bull Market…
People who throw things out are my heroes. While you won’t see me on an episode of Hoarders anytime soon, let’s just say it’s a good thing I have a big garage. It’s filled with what I call “mementos” – and what my wife calls “junk” – from my life. But I can’t get myself to toss…
TSLA Misses Estimates & Stock Soars Tesla stock had been cratering in the past few weeks because of fears the firm would need to raise capital, that Elon Musk was an aloof CEO, and that the firm would miss Model 3 production expectations. Tesla’s guidance was for a production run rate of 2,500 per week….
Take a company’s revenues over a given period of time, deduct production cost and you will have earnings! Earnings growth interests all, right from the top brass to research analysts. And why not? If the company doesn’t make money, it won’t be able to stand the test of time. This metric is also considered a…
This update is in response to a standing request for real (inflation-adjusted) charts of the S&P 500, Dow 30, and Nasdaq Composite. It includes the latest monthly close data. Here are two overlays — one with the nominal price, excluding dividends, and the other with the price adjusted for inflation based on the Consumer Price…
Well, that was quite the reversal. My highest profit of the day was pretty much the millisecond that the market opened. It was all downhill from there. A glance at XLB, the Materials ETF, shows that the market is having just a bit of trouble making its mind up. The bulls had two big…
The US stock futures markets had slumped badly in the overnight session due to the escalating ‘trade war’ with China. And as you can see, stocks made a dramatic turnaround and finished markedly higher on the day. Silver was off a bit and gold closed virtually unchanged after having rallied in a flight to safety in the…
