Skip to main content
No. of Recommendations: 2
Print the post Back To Top
No. of Recommendations: 0
Interesting article. Thanks for posting Arindam. The article prompted me to take a look at the latest market metrics;

S&P 500 Index P/E RATIO Forward looking 23.61
S&P 500 Index DIV YIELD Forward looking 1.39

Figures taken from the WSJ https://www.wsj.com/market-data/stocks/peyields

Seems like a lot of the companies that are reporting earnings are beating estimates, so there is a good chance that the forward P/E metric might be a bit high. Still though, it seems like the market is certainly frothy. But then again there is TINA (there is no alternative). I would suspect that any kind of market correction of 10% or so would more than likely be met by some pretty strong buying unless something changes (like 10 year treasury yields going higher).

Jim
Print the post Back To Top
No. of Recommendations: 0
Jim,

Thanks for commenting.

What I liked about the article is that it took a broader view than usual and tried to provide a context for where we find ourselves today. How much longer the pretense can go on of stock prices being related to genuine economic activity --as opposed to mostly being supported by Fed-supplied liquidity-- is anyone's guess.

"What to do in the meanwhile?" as you point out. That's going to vary according to one's means and goals. More to practice green eye shades skills than to turn a profit, I've been poking around in preferreds while waiting for The Big Crash.

Arindam
Print the post Back To Top
No. of Recommendations: 0
"What to do in the meanwhile?"

I'm holding my stock positions. I don't really hardly ever sell any positions (I hold mostly broad based ETFs like the S&P 500, small cap, mid cap, REITs, etc...) I just add to them during big market sell-offs.

Like you, I've picked up another preferred or two, namely BAC/PL & WFC/PZ. I've also been adding a couple CEFs. The latest being BSTZ & BCAT. Not getting crazy with it, just modest positions.

Jim
Print the post Back To Top
No. of Recommendations: 1
10% isn't much of a correction. I think some people are more worried about 20%+ and then a lot of years with poor returns.

I am getting close to retirement so I am trying to be a bit careful.
Print the post Back To Top