By dissecting the S&P 500 per valuation quintiles we see that only parts of the market are overvalued. Historically, buying the lowest PE quintile stocks has increased annual returns by 360 basis points. High PE stocks have large market capitalizations which force you to own more of them through index funds, increasing your risks and… Read More »Minimize Risk Without Sacrificing Returns? Sven Tells You How
The last jobs report was good news but it also indicates higher costs and full employment. An “easy to hire, easy to fire” mentality is in the air. Healthcare, cash or short term trades should be the best options in this situation. Introduction Last week the Nasdaq and S&P 500 reached yet another record high.… Read More »Signs of Fragility in the Economy Point to an Impending Bear Market. What To Do Now To Protect Yourself.
Corporate earnings and fundamentals are variable, pick the stocks that best suit you. There are low PE ratio stocks, high growth stocks, and high dividend yielders – anything you might want. But be aware: some companies engage in buybacks that are detrimental to shareholders’ value. Introduction When you add up the top ten companies by… Read More »Corporate Earnings of the S&P 500’s Top 10: Why It Is Important for You
All factors are indicating an artificially created asset inflation. Earnings are expected to decline with economic outlook being constantly revised downwards. Gold is gaining alongside stocks which confirms that all assets are inflated. Introduction Amidst all the turmoil from BREXIT, negative interest rates and global downward economic growth forecasts, the S&P 500 has reached a… Read More »As The S&P 500 Reaches New Highs, Asset Inflation Continues
This article provides a list of companies whose earnings will be affected by the BREXIT. The dollar is stable thus we should not expect strong global currency effects. The probability of U.S. recession has hit an 8-year high which should be detrimental for earnings in next two years. Introduction In the long term, stock returns are… Read More »Prepare for Earnings Season: Prices, BREXIT, GDP & Trends
A look into next month’s earnings season and trends. 6 out of 10 S&P sectors have earnings declining. 72% of companies issued negative guidance. Introduction With all eyes focused on Brexit and the FED, it seems that no one really cares what is going on in the economy and, most importantly, with corporate earnings. Don’t… Read More »Don’t Be Fooled by Noise, Earnings Will Tell the Truth
Real earnings are currently 25% lower than pro forma reported ones. The other consolidated income statement can also hide surprises. Introduction How would life look if things were as you saw them or exactly like someone presented them? Surreal for sure as it would require a non-human mind to objectively process information and accept a… Read More »There is a Huge GAP Between Reported and GAAP Earnings
“Sell in May and go away” doesn’t sound so foolish anymore. The Dow Jones Industrial Index average revenue has declined by 4.1%. High liquidity and employment enables buybacks and pension funding that keep the market at high levels. Introduction Recently there have been some surprising earnings debacles. This article is going to elaborate on them… Read More »An Analysis of the Latest Earnings Reports