What Corporate Earnings Are Telling Us About Equity Valuations

What Corporate Earnings Are Telling Us About Equity Valuations

Article SummaryAccording to FactSet’s latest release, 77% of earnings beat analyst expectations, but 85% of revisions guided negatively.S&P 500 forward P/E along with the CAPE ratio is pacing higher than its historical 10-year average. which may indicate a bearish signal.In a low-yield interest rate environment and weakness overseas, and regardless of historical valuation metrics, stocks may still be the best asset class option.Just six weeks into 2015, stocks are hitting new record highs. The S&P 500 briefly closed above 2100 this week, a historic high for the index, and it’s up nearly 2.5% YTD. Despite macroeconomic headwinds like oil prices and the European stimulus plan, investors seem to be inexorably optimistic… Read full article at Seeking...
The Myth Of Central Bank Stimulus And Economic Recovery

The Myth Of Central Bank Stimulus And Economic Recovery

Article SummaryThree significant QE phases in the United States has quadrupled the monetary base, kept interest rates low and stimulated job growth. The inflationary effects have yet to be fully realized.The effects of Abenomics in Japan has helped to prop up inflation but still haven’t led to significant GDP growth.The markets have reacted favorably to the ECB QE announcement, necessary in an 11.5% unemployment environment, but time will tell regarding the positive effects of this and other QEs.The United States wrapped up its unprecedented quantitative easing program late last year and now Europe is wading into those very same waters in the hopes that it will kick-start its economy and prevent deflation. Considering that we’re facing improving growth this year, it seems – on the surface at least – that central bank action works to prevent recessions and trigger economic booms… Read full article at Seeking...