They Might Be Giants, Again
Every quarter I take a look at the six different stock asset classes to try to get an idea of how they stack up relative to their historical valuations. Small-, mid- and large-cap asset classes, in both value and growth... Read More →
Nowhere to Turn in this Rate-Hike Cycle
At the start of 2000 it became clear that the Federal Reserve was going to burst the stock market bubble by raising interest rates. Of course, the Fed would never say its intentions were to deflate an overheated stock market:... Read More →
What Would Robert Shiller Do Now?
I recently re-read an article I cut out of The Wall Street Journal on July 29, 2002, titled “Prescient Professor Favors Market-Timing.” The prescient professor referred to was Yale economist Robert Shiller. You’ve certainly heard of Prof. Shiller, and you... Read More →
Readings Vary with Valuation Metrics
In a July 2 column, I wrote about how the Fed Model (a.k.a. Greenspan’s Model) indicated that stocks were undervalued by about 25% relative to bonds. To review, the model basically compares the forward earnings yield on the S&P 500... Read More →
Protection Against a Housing Collapse
I’ve been worried about the housing market for a couple of years. The enthusiasm, bidding wars, blind optimism and the simple fact that so many of my acquaintances think they’re so darn smart because their houses are appreciating, reminds me... Read More →
Revisiting the Fed Model
Remember the Fed Model? If your memory needs refreshing, here’s a quick review. For years, there’s been a strong correlation between the earnings yield for the S&P 500 (inverse of the forward price-to-earnings ratio) and the yield on the 10-year... Read More →
A Dividend ETF Worth Emulating
In my June 4,2004 column I highlighted a relatively new exchange-traded fund (ETF) launched by Barclays Global Investors in 2003. The Dow Jones Select Dividend (DVY:NYSE) fund is a diversified basket of 50 high-quality dividend-paying stocks that can be purchased... Read More →
Dividend Investors, Get Diversified
The recent stock market correction has taken its toll on many stocks. With the average stock getting hit by about 15%, you may have experienced the “agony of defeat” watching some of your own holdings decline in value. The major... Read More →
Mapping Out the Exit Signs
I don’t think enough is written about the proper time to sell stocks. We’re all interested in learning what to buy, but protecting gains and/or limiting losses is equally important. Selling a stock correctly can be just as fulfilling as... Read More →
The Appeal of Utilities Stocks
When building a portfolio of dividend-paying blue-chips, there’s no better place to start than the utility sector. The group has historically paid the highest dividends, and that high cash flow appeals to more conservative investors and/or retirees who need income... Read More →