4 Unusual Signs Stocks Are In A Bubble – Forbes

Election optimism boosts India stocks to record high – May. 13, 2014

india modi election

Judging a companys future growth based on the last 12 months can be fraught with unrealistic data because of short term economic swings, newly released products, etc. A more accurate measurement would be calculating P/E Ratios over a longer time period, say 8-10 years. By broadening the view you bring into focus more accurate measurement on the price youre paying for a stock. Historically, P/E Ratios above 16.5 are considered expensive, yet current P/E Ratiosshow that stocks are expensive( 18 )yet significantly less than they truly are when taking in a longer time frame ( 25 ).
Source: http://www.forbes.com/sites/robrussell/2014/05/12/4-unusual-signs-stocks-are-in-a-bubble/

The currency has lost more than a third of its value since 2011. Observers don’t expect much improvement this year, a troubling sign for one of the world’s top 10 economies. Google+ Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET.
Source: http://money.cnn.com/2014/05/13/investing/india-election-modi/index.html

Brokerages expect winning streak in cyclical stocks to continue – The Economic Times

First, the scoreboard: S&P 500: 1,896.6 (+18.1, +0.97%) Nasdaq: 4,143.8, (+71.9, +1.77%) And now the top stories: India’s BSE Sensex hit a record high on Monday after exit polls showed opposition leader Narendra Modi and his Bharatiya Janata Party (BJP) will win the Indian elections. At 2:30 p.m. ET we saw the Treasury Budget posted a $107 billion surplus in April, which suggests the federal government is on track to lower its annual deficit. The Congressional Budget Office projects the deficit will shrink to $492 billion during the fiscal year that began in October, compared with the $680 billion deficit in 2013. Morgan Stanley’s Katy Huberty lowered her 2014 tablet growth forecast to 12% from 26% “on the back of increasing penetration rates and the lack of new, differentiated products.” Android tablets have done better than iOS tablets “on the back of lower price points and broader product portfolios.” In the U.S., stocks were hitting record highs on Monday, http://www.todayhotstocks.com and in his NYSE MAC Desk Mid-Day update note, Rich Barry, points out five reasons why this might be: 1.
Source: https://finance.yahoo.com/news/stocks-close-record-high-heres-200016281.html

CANADA STOCKS-Natural resource prices, shares drive TSX higher
| Reuters

Most analysts peg revenue growth on the back of GDP numbers. So, any upward revision in GDP will boost revenue earnings. For instance, cement companies grow 1.4-1.5 times of GDP growth; so if GDP growth for FY16 is revised upwards to 6.3% from the current consensus growth at 5.8%, it would automatically lead to higher revenue and profit growth assumption of analysts. Secondly, higher profit growth in comparison with historical profit growth leads to improvement in the return on equity (RoE).
Source: http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/brokerages-expect-winning-streak-in-cyclical-stocks-to-continue/articleshow/35033921.cms

STOCKS CLOSE AT RECORD HIGH: Here’s What You Need To Know – Yahoo Finance

The energy sector jumped 1.4 percent on Monday and had the biggest positive influence on the market. “We’ve got lots of momentum here. You can’t argue with the tape,” said David Cockfield, managing director and portfolio manager at Northland Wealth Management. “I’m reasonably positive on the oil sector,” he added.
Source: http://www.reuters.com/article/2014/05/12/markets-canada-stocks-idUSL1N0NY0O520140512?type=companyNews&feedType=RSS


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s