Valuation

Stock Markets Hyper-Risky 3

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By Adam Hamilton – Re-Blogged From http://www.Silver-Phoenix500.com

The lofty US stock markets remain riddled with euphoria and complacency, fueled by an exceptional bull. Investors believe downside risks are trivial, despite long years of epic central-bank easing catapulting valuations to dangerous bull-slaying extremes. This has left today’s markets hyper-risky, with a massive bear looming as the Fed and ECB increasingly slow and reverse their easy-money policies. Caveat emptor!

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Big US Stocks’ Q4’17 Fundamentals

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By Adam Hamilton – Re-Blogged From http://www.Silver-Phoenix500.com

The mega-cap stocks that dominate the US markets have enjoyed an amazing bull run. But February’s first correction in years proved things are changing. With that unnatural low-volatility melt-up behind us, it’s more important than ever to keep leading stocks’ underlying fundamentals in focus. They help investors understand which major American companies are the best buys and when to deploy capital in them.

For some years now, I’ve been doing deep dives into the quarterly financial and operational results in the small contrarian sector of gold and silver miners. While hard and tedious work, this exercise has proven incredibly valuable. With each passing quarter my knowledge of individual companies grows, helping to ferret out miners with superior fundamentals and the greatest upside potential. Traders love the resulting essays.

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It’s Ugly If You Are Looking for Value in Equitie

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By Patrick Watson – Re-Blogged From Newsmax

The long-awaited Strategic Investment Conference 2018 kicked off with a keynote from David Rosenberg of Gluskin Sheff titled, “Year of the Dog: Will It Bark or Bite?” (Spoiler: The answer is “bite.”)

Rosenberg began by running through a list of his own metrics: forward P/E, price/sales, price/book value, enterprise value/EBITDA. All of them point to record-high valuations.

Image: David Rosenberg: It's Ugly If You Are Looking for Value in Equities

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Equities Within A (HYPER) Inflationary Spiral

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By Michael Ballanger – Re-Blogged From http://www.Silver-Phoenix500.com

Before I launch into one of my classic, bitter, vitriolic diatribes against all forms of modern-day interventionalist-type, fraudulent excuses for what use to be “free markets,” have a gander at the chart below. Pay particular attention to the smiles on all of those beaming faces. . .

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Bubble Stock Investing

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  By Bob Shapiro
I invest in Gold & Silver, mostly miners.
Most people, I expect, are unwilling or don’t have the temperament to put all their eggs in one basket. The most familiar of the highly liquid investments is stocks – shares of most of the companies you know and love plus many that you’ve never heard of.
But, by pretty much any objective measure, stocks are in Bubble territory today, and the FED has started a tightening cycle – and has promised major tightening leading up to the mid-term elections this November.
I suggest that you still can make money in stocks today, using a strategy that Hedge Funds originally were designed to use – buy stocks that you think have the brightest prospects and sell short stocks that likely will be dogs (by comparison). If your ‘good’ stocks indeed do better than your ‘bad’ stocks, then you’ll make money. It matters not whether they both go up, both go down, or the ‘good’ is up and the ‘bad’ down, so long as the ‘good’ does better than the ‘bad.’
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Warning Signs of a Market Top

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By Rob Williams – Re-Blogged From Newsmax

Stocks this year have surged to record highs on speculation that President Trump’s push for tax reform will help to boost the economy and give corporations a chance to reward shareholders with dividends and buybacks.

But the strong gains shouldn’t distract investors from some worrisome signs that portend of a market decline, Albert Edwards, global strategist at Societe Generale, said in a Nov. 15 report.

“Investors are beginning to punish the corporate debt and equity of highly indebted U.S. companies,” Edwards said. “Excess U.S. corporate debt is probably the key area of vulnerability that could bring down the QE-inflated pyramid scheme that the central banks have created.”

Image: Albert Edwards: Watch Warning Signs of a Market Top
Albert Edwards (Societe Generale/Dollar Photo Club)